Markham Boxgrove Real Estate Blog

Helping Buyers and Sellers real estate needs in Markham's Boxgrove and Morningside Heights communities

Markham Boxgrove: Impact of the New Mortgage Rules

Just thought I would provide a few bits of info you may find useful when talking to your clients:

 

  • As of Monday April 19th, the banks will use the 5 year posted rate to qualify clients for a mortgage
BEFORE April 19th a $250K mortgage with 5% down needed about $53,000/year of income
AFTER April 19th the same client will need about $63,000/year
  • 5% down for a purchase through CMHC is still available (strong credit score needed to qualify)
  • Fixed rates have been on the climb, 2-3 increases in the past 2 weeks!
  • Prime still holding steady at 2.25% with forecasted 0.25% or 0.50% increases coming in June/July
  • Variable mortgages at Prime “minus” still a much better option than 5 year fixed (for interest costs & principal repayment)
  • My pre-approvals are good for 90 days & my rates can be held for 120 days

 

Let me assist your clients with great service, sound mortgage advice and most importantly, get them approved!

 

Hope this info proves helpful, have an amazing week!

 

Wayne Marks (www.waynemarks.ca)
TD Canada Trust
Mobile Mortgage Specialist
GTA & Surrounding Markets
Tel: 416.294.9704
Fax: 416.298.5805
"For MORE than a great interest rate!"

Google It - Do your Due Diligence before accepting facts from a Realtor

A week ago, my wife's cousin called me asking me questions on the new mortgage rules that will come in affect in April.  I told him about the new rules and was surprised when I heard from him yesterday that a Realtor was telling them starting "April 17th, you had to put a 15% down-payment to buy a house."  What crap!  His wife called the lady from an Ad and she blatantly looked them in the eye and lied!  Call me naive, but in this day of the internet, where a simple search can get you most of your answers, is it wise to lie and try to influence someone to buy by creating fear and panic!  I think not!  I wrote about the new mortgage rules in my past blog but here it is again.  Do your due diligence before accepting facts from Salespeople... except me of course. :)

1.  At this time you can still purchase with 5% down.  (I know you can get a 5% cash back and in affect buy with 0% down ( but obviously you pay with a higher interest rate and must have good credit to qualify))
2.  Mortgages will be qualified on the 5 year, fixed, posted rate... not discounted rate.  This ensures you can cover monthly payments when interest rates do go up as is forecasted to happen by 2-4% in the next 2 years.
3.  Investors will have to put down 20% from the current 5%. 
4.  You can only refinance 90% of the house value from the 95% it used to be.

In fact these changes are GOOD for the economy.  It will reduce buyers purchasing homes who shouldn't in the first place.  It will ensure investors have a significant stake in their investments and do not artificially inflate costs to legitimate buyers with their speculative buying.

So you will still be able to buy with 5% down, providing you have good credit and a decent salary.  I've been told, some people borrow the 5% from family and in 6 to 12 months get a line of credit on their house and pay the loan back, to bypass the 5% down.  As always where there is a will there will be creative ways to finance... but I highly recommend having a stake in your purchase.  Call me old school, but there is great sense of pride when you actually buy a home and do it with your own savings!

Have any questions.. call or email me.  If you're selling soon in the GTA, find out how you can save money with my commission packages.

Jas Jagpal, BSc. York Uni.  Sales Representative,  jasjagpal@rogers.com
Serving the GTA.  www.JasJagpal.com