{"id":1703,"date":"2020-02-21T09:05:21","date_gmt":"2020-02-21T14:05:21","guid":{"rendered":"http:\/\/www.karenmillar.com\/blog\/?p=1703"},"modified":"2020-02-21T09:05:22","modified_gmt":"2020-02-21T14:05:22","slug":"mortgage-update-3","status":"publish","type":"post","link":"https:\/\/www.karenmillar.com\/blog\/mortgage-update-3\/","title":{"rendered":"Mortgage Update!!"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

BREAKING NEWS FROM JAKE!!<\/p>\n\n\n\n

“Hello.
I just found out the new stress effective April 6th has been\u00a0slightly changed<\/em>\u00a0for buyers with 5-19% down payment buyers (or, “High Ratio” borrowers). The new stress test is rather convoluted but at least it’s something rather than nothing. It’s also a sign that the buyers who have 20% or more will also see some changes, we just don’t know when (yet).
Here is the\u00a0old way<\/strong>\u00a0of qualifying a high-ratio borrower:
The higher of 5.19% OR\u00a0+2% on your\u00a0contract rate. We haven’t seen this higher than 5.19% for a while therefore a typical $100,000 salaried borrower with 5% down could typically borrow 4.6 TIMES their income.
Here is the\u00a0new way<\/strong>\u00a0of qualifying a high-ratio borrower:
Effective April 6th, the rate will be\u00a0+2% of the 4-week average rate. Using 2.79% as a typical 4 week average, therefore, we’re at 4.79%. A $100,000 salaried borrower could borrow 5 TIMES their income.
So we went from $463,000 to $500,000 for this borrower or\u00a08% more\u00a0<\/strong>than today. Not bad, right?
<\/p>\n\n\n\n

Here is the\u00a0Government of Canada Press Release<\/a>\u00a0about the new stress test.
At a time when the market is absolutely ripping in our part of the world, this will help\u00a0a tiny teeny little bit.<\/em>On one hand, this is the change the Government is going to say “see! Look! We listened!”
<\/p>\n\n\n\n

On the other hand, this is the change that will have a very nominal impact in 99% of cases. Same with the “shared equity” program, this will only help the very few people out there who need to go to the absolute maximum.
Overall, when I look at my 2019 numbers, I noted that the majority of people do not go to the maximum ratios, the majority of them have down payments of at least 20% and the majority had amazing credit. Take a look at my 2019 numbers\u00a0here<\/a>.
<\/p>\n\n\n\n

Please let me know if you have any questions. I’d be glad to help get you pre-approved on the spot!<\/p>\n\n\n\n

Jake<\/p>\n\n\n\n

E: Jake@mortgagejake.com<\/a>C: 416 910 4448<\/p>\n\n\n\n


<\/p>\n","protected":false},"excerpt":{"rendered":"

BREAKING NEWS FROM JAKE!! “Hello.I just found out the new stress effective April 6th has been\u00a0slightly changed\u00a0for buyers with 5-19% down payment buyers (or, “High Ratio” borrowers). The new stress … [read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,1473,5],"tags":[1426,1174,1361,28,19,672,126,27,632,1496,9,20,1173,1476,191,140],"class_list":["post-1703","post","type-post","status-publish","format-standard","hentry","category-community","category-finance","category-real-estate","tag-advice","tag-buying","tag-expert","tag-finance","tag-first-time-buyer","tag-karen-millar","tag-karen-millar-team","tag-mortgage","tag-mortgage-jake","tag-pre-approval","tag-real-estate","tag-seller","tag-selling","tag-stress-test","tag-toronto-homes","tag-toronto-real-estate"],"_links":{"self":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/comments?post=1703"}],"version-history":[{"count":1,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1703\/revisions"}],"predecessor-version":[{"id":1709,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1703\/revisions\/1709"}],"wp:attachment":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/media?parent=1703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/categories?post=1703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/tags?post=1703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}