Proposed New Mortgage Approval Rules For Condo Buyers
The Federal Government is proposing new rules that will make it much more difficult for condo buyers to qualify for financing. Currently when applying for financing 50% of the condo fees have to be added to monthly debt. Under the new proposal 100% of the condo fees will have to be factored in. Also being considered is lowering the maximum amortization from 35 years to 30 years. This would raise the income required to qualify for financing and raise monthly payments. Also still on the radar is raising the minimum down payment from the current 5%. If you're thinking of buying, get pre approved and you may want to make the plunge while the rules are still at the current level.
If you have any questions or would like help buying a property just email me at donmerrifieldjr@remax.net
Filed under: Market Conditions, Finances, cmhc, first time homebuyer information, mortgage rule changes, mortgage rules, high ratio mortgage changes, posted mortgage rate, interest rates, Canadian housing market, mortage rates, economic conditions, mortgage qualification rules