It appears the office of the superintendent of financial institutions [OFSI] is still gung ho on toughening the mortgage rules even more. Anyone who has been preapproved with 20% or more down payment could be affected. Thus, if a proposed purchaser was preapproved at today’s rate of 3.19%, they are proposing now to be qualified at the stress test rate of 4.89%. In our professional opinion, this policy is much too strong and will affect the whole real estate industry negatively. Here is how it will hurt purchasers and homeowners:

• Limit the price level they feel comfortable with
• Could limit the mortgages available to clients B Lenders, with higher rates and fees, will be needed to fill the gap
• Clients will have to borrow much less when refinancing

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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