Mortgage Qualification Rate Increased

As everyone probably already knows, the new qualification rules came into effect on January 1st and we are all feeling their effects!

This is just a kind reminder that as prime lending rates rise, so does the “benchmark” or qualification rate.

Previously the benchmark rate had been set at 4.99%.

So anyone qualifying for a mortgage would need to qualify at that rate OR the contract rate + 2%, whichever was higher.

 

Now with the last rise in rates, the benchmark is at 5.14%.

The same rules apply, but the threshold has increased. Furthermore, we anticipate that it will continue to increase. Contract rates are still low! So I would suggest getting your deals in soon to qualify and then continue to enjoy the low contract rates that are available.

Sincerely,

Robert

Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online at https://application.malink.ca:8112/App/MARC/FLORISR/en-ca/1896 with absolutely no pressure and no obligation.

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