{"id":947,"date":"2018-10-18T21:12:30","date_gmt":"2018-10-19T01:12:30","guid":{"rendered":"http:\/\/www.karenmillar.com\/blog\/?p=947"},"modified":"2018-10-18T21:12:30","modified_gmt":"2018-10-19T01:12:30","slug":"how-do-rate-increases-affect-buying-power","status":"publish","type":"post","link":"https:\/\/www.karenmillar.com\/blog\/how-do-rate-increases-affect-buying-power\/","title":{"rendered":"How do rate increases affect buying power?"},"content":{"rendered":"
\"\"<\/div>\n
We received another fantastic email from one of our favourite mortgage specialists that I would like to share with you. It’s a great read and should help you understand your buying power.<\/div>\n
<\/div>\n
“So –\u00a0what happens to mortgage qualifying when rates go up?<\/b><\/div>\n
<\/div>\n
A sample: $100,000 income earner today can qualify for $540,000.<\/div>\n
If the rate goes up by 1\/4, that number will drop by 2.4% to $527,000.<\/div>\n
If the rate goes up 1\/4% again, another 2.4% drop, and so forth.<\/div>\n
<\/div>\n
If we are to expect a 1% increase in rates by the end of 2019 as some are expecting, that’ll mean this sample $100K\/year income buyer will qualify for 9.6% less mortgage. In a market that\u00a0is not expected to have major price gains<\/a>, but is not expected to drop, that 9.6% can mean the difference between getting in or staying out.<\/div>\n
<\/div>\n
I’m not a fan of pushing people to buying properties they can’t afford. That is NOT the point of this email. I DO want people to know that waiting will affect their ability to qualify for a mortgage, however.<\/div>\n
<\/div>\n
\n

Jake Abramowicz<\/p>\n

\n
E:\u00a0Jake@mortgagejake.com<\/a><\/div>\n
C: 416 910 4448″<\/div>\n<\/div>\n<\/div>\n
<\/div>\n
Please let us know if you have any questions about the real estate market.<\/div>\n
<\/div>\n
Thanks!<\/div>\n
Karen<\/div>\n
416-390-2566<\/div>\n","protected":false},"excerpt":{"rendered":"

We received another fantastic email from one of our favourite mortgage specialists that I would like to share with you. It’s a great read and should help you understand your … [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":[5],"tags":[56,7,92,629,585,631,126,43,632,331,20,219,191,140,630],"class_list":["post-947","post","type-post","status-publish","format-standard","hentry","category-real-estate","tag-buying-a-home","tag-don-mills","tag-east-york","tag-financial","tag-investment-properties","tag-jake-abramowicz","tag-karen-millar-team","tag-leaside","tag-mortgage-jake","tag-mortgages","tag-seller","tag-selling-a-home","tag-toronto-homes","tag-toronto-real-estate","tag-vendor"],"_links":{"self":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/947","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=947"}],"version-history":[{"count":2,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/947\/revisions"}],"predecessor-version":[{"id":950,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/947\/revisions\/950"}],"wp:attachment":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/media?parent=947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/categories?post=947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/tags?post=947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}