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Tip of the Month: Your careful consideration of your financing is required immediately.
After a short consultation period, the federal government has warned my industry that it plans to formally release the new “2% over contract rate stress test” qualification guidelines for mortgage consumers. Qualification at lenders has become increasingly difficult in a short period of time and this will greatly restrict lending further, even for those conventional borrowers that are targeted by this new regulation.
When the release comes you can expect lenders to be very busy and with rates rising every week, if you can anticipate any changes or know you will have different requirements than you do now, you should contact me to discuss it and start to build a file and collect the required documentation right away.
HERE ARE THINGS TO CONSIDER:
Renewing Early – Rates are expected to be higher in the future so renewing early is often a good idea. It is possible that some may not be able to qualify for any changes at all to their existing mortgage at renewal so if you want to have options outside your current lender and mortgage structure, now would be the time to look into it.
Home Purchase – Whether you are a First Time Buyer, Move Up Buyer or are even considering Porting which almost always entails re-qualification, locking in and reviewing now will be important.
Refinancing – Qualifying to add in other higher interest and high payment debt into a new mortgage can put you in a better position financially. Now is a good time to pay off lines of credit, credit cards, and vehicle loans.
Line of Credit – Adding a secured Home Equity Line Of Credit for personal use or just security will be harder in the future. Consider adding one now.
Changing Amortization, Product, Term or Lender – Now is the time to look at these options.
To find out more about the best mortgage options for you, talk to me! I’m a mortgage expert and I would be happy to help you navigate the process of financing a home or renewing your mortgage.
Welcome to the October issue of the News and Rate Advisor
Source: Bank of Canada
Source: Stats Canada- preliminary figures
Source: Bank of Canada
Source: CREA – Most Recent Month Reported
USE THESE RATES AS A GENERAL GUIDELINE ONLY. Remember, rates are subject to change and are dependant on a number of factors. Please contact me for a no-obligation profile analysis to determine the best mortgage product for you.