More government changes are coming in a couple weeks impacting how much you can qualify for in a mortgage payment and home…. The government is implementing a new “stress test rate” when qualifying for a mortgage. You must be able to qualify at their “stress test rate” even though the rate and payment you’ll make will be much less. What does this mean to you? It means your total amount of mortgage will drop significantly if you’re at the top of your borrowing power. This means an old pre-approval at $300,000 could drop to $230,000 if you’re at the max borrowing power!
Contact me with more questions and if you’re sitting on a pre-approval, you must have an offer and have it CMHC approved before mid October to use the current rules. Inbox me, call me or text me with questions!