Exciting news! We’ve launched a new tool on my website to make it easier for you to find your dream home or just stay informed about what’s going on in the local real estate market.
Our new saved search feature lets you create and save a custom property search and get notifications in your inbox whenever new properties match your criteria.
Whether you’re actively looking for your next home, or just curious about what’s available around you, this tool will save you a lot of time. And you can rest easy knowing you’ll be one of the first people to know when your dream home hits the market.
We hope this makes your property quest easier and, as always, let us know if there’s anything we can help you with!
As many of you know, stress rules will apply to all purchases including those with 20% down or more effective January 1 2018. Many clients will see an effective drop of 20% in their buying power which translates straight to a reduced purchase price. However, what happens with existing pre approvals?
Here are the rules that apply with a few of my lenders but not all:
Any preapproval committed prior to January 1st 2018 will remain valid for up to 120 days from the date of the original preapproval. Any extensions of an expired preapproval after December 31 2017 must be qualified using the qualifying rate based on the new rules.
Should a preapproval that was committed in 2017 turn into a real deal, the old rules apply even if the closing date of the new purchase is greater than the expiry date of the preapproval, but not greater than 120 days from the date of the commitment for the real deal.
Example; A pre approval committed prior to January 1 expires March 15, 2018. Borrowers purchase a property closing May 1 2018. If the real deal is committed on/before March 15th, we still qualify using the old qualifying rate rule. The rate is no longer protected as the closing is beyond the expiry date of the pre approval, however the old rules still apply for qualification, as long as the deal closes within 120 days.
This is a big opportunity so please contact me asap to get your pre approval in prior to January 1 2018. Any existing pre approvals that I have will be resubmitted next week to take advantage of this.
Today, the Office of the Superintendent of Financial Institutions (OSFI) introduced new rules on mortgage lending to take effect next year.
OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages (mortgage consumers with down payments 20% or greater than their home price).
The rules now require the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada (presently 4.89%) or 200 basis points above the mortgage holder’s contractual mortgage rate. “The main effect will be felt by first-time buyers,” says James Laird, co-founder of Ratehub.ca. “No matter how much money they put down as a down payment, they will have to pass the stress test.” The effect of the changes will be huge, resulting in a 20% decrease in affordability, meaning a first-time homebuyer will be able to buy 20% less house, explains Laird.
MoneySense asked Ratehub.ca to run the numbers on two likely scenarios and find out what it would mean for a family’s bottom line. Here’s what they found:
Livia McCabe and Brendan Hughes are realtors with Re/Max Real Estate (Central) who’ve helped many people move from outer communities to downtown and vice versa. In their experience, the people moving into the city centre from the outskirts tend to be empty nesters looking to downsize and simplify in their retirement. “With the kids grown up and gone, most of them find their current property too large and in need of a large renovation,” says McCabe. “They would rather sell and find something turnkey that they could enjoy immediately.”
– because of you I was named “Top Producer” for August, 2017 at RE/MAX Central, the #1 RE/MAX Office