Real Estate Agent with Royal LePage RCR Realty, Brokerage
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Real Estate News You Can Use
Changes To 2018 Mortgage Rules!!!
And How it Impacts the Housing Market
As of October 17 2017, new guidelines for mortgage financing were set to apply to ALL NEW MORTGAGES and MORTGAGE RENEWALS as of January 1st 2018 - not just those requiring mortgage insurance (i.e. mortgages with a 20% or less downpayment or equity value).
This new “Stress Test” is designed to help protect homeowners from rising interest rates, but what it means to the home-buyer is a potential 21% decrease in buying power. This is due to the new assessment rates applicants will have to be approved at beginning in the New Year. This increase affects everyone regardless of down payment, equity, income, and credit.
If you are considering purchasing a new home in the next 6-12 months, it may be in your best interest to purchase before the 21% decrease in buying power, especially if you are feeling limited in the current market. We have entered into a housing surplus, and now is the time to consider shopping for good deals or market investments before these financially limiting changes take place.
Please stay tuned for more market updates and information regarding these changes.
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