The most recent mortgage qualification changes, specifically the mortgage "stress test" implemented at the beginning of last year, continue to impact the type of home Canadians are eligible to purchase. Has it affected your moving plans?
Stress tests used to apply only to those who had a down payment of less than 20 percent; however, the updated rules now extend to anyone applying for any mortgage — whether a variable or a fixed mortgage — even if they have a 20 percent or greater down payment. The impact of the stress test, where applicants must prove they can still afford mortgage payments if rates were to increase, has been in many cases to reduce affordability. Because of this, some buyers who may previously have been considering moving may be in a quandary about what they can now afford.
It's crucial to work with a real estate professional who understands your affordability guidelines, to find the right home for you — at the right price! There's no doubt that buying a home is expensive, but heading out with a set budget and a good understanding of your financial footing will go far in your successful house hunt.
If you're wondering how much your current house is worth in today's market, you're invited to call today for your complimentary price evaluation, and to receive the latest market update for your specific area. It would be a pleasure to hear from you, whether you're ready to buy or sell now, are just keeping an eye on the market for a possible future move, or are simply curious about how much houses are selling for on your street!