New Qualification Rules for Mortgages

We met with mobile mortgage specialists from RBC this week to discuss how the recentconventional-versus-high-ratio-mortgage rule changes are affecting home buyers. Its not overly complex but the changes do have a significant impact on both buyers and the potentially the real estate market.

Lets run through a possible purchase scenario 

  • Buyer Client is a first time home buyer
  • They saved 5% for the down payment
  • $100,000 combined income
  • $800 a month for Loans, Car Payment, VISA Balance etc.

Subject Property they would like to purchase

  • Purchase Price $475,000
  • Property Taxes $5,000 / year
  • Heating and or other Expenses $1,200

 

2017 Qualification Rates for a 5 year fixed term – 3.19% 

  • Purchase Price $475,000
  • Purchase 5% Down Payment
  • 25 Year Amortization
  • Estimated Monthly Payment $2,221

** Total Debt Service Ratio =42%  equals mortgage APPROVAL  ** 

2018 Qualification Rates for a 5 year fixed term – 5.14% 

  • Purchase Price $475,000
  • Purchase 5% Down Payment
  • 25 Year Amortization
  • Estimated Monthly Payment $2,712

** Total Debt Service Ratio =48%  equals mortgage DECLINED  ** 

ADJUSTED QUALIFICATION *** 2018 Qualification Rates for a 5 year fixed term – 5.14% 

  • Purchase Price $400,000
  • Purchase 5% Down Payment
  • 25 Year Amortization
  • Estimated Monthly Payment $2,299

** Total Debt Service Ratio =43%  equals mortgage APPROVAL  **

Now more than ever it is so important to align yourself with and partner with industry professionals to help navigate you through all of your real estate options and the process of searching for and purchasing your new home. You may qualify for more than you think., You may have to adjust your search criteria, either way knowledge is truly a power full tool and a tremendous advantage in this current market place

Would like to thank Marlene Jobb, Ethan Jobb & Alexandra Jobb for presenting and  assembling the above numbers and scenarios. 

  • Marlene Jobb @ (905) 432-4310 marlene.jobb@RBC.com
  • Ethan Jobb @ (289) 927-3720 ethan.jobb@RBC.com
  • Alexandra Jobb @ (905) 995-2126 alexandra.jobb@RBC.com

Thank you

 

SCOTT ROY, Sales Representative

RE/MAX JAZZ Inc. Brokerage, 21 Drew Street, Oshawa ON

(905) 728-1600 Office or (905) 435-7355 Direct – scott@lifeindurham.com

 

Great Family Home For Sale in Port Perry

Welcome to 33 Winchurch Drive Port Perry

IMG_9473
Open Concept Kitchen & Breakfast Area

Wonderful 3 Bedroom and 3 Bathroom home.

2 Storey Link Style Home Located in a Family Friendly Neighbourhood in Port Perry. This Home is situated within walking distance to Schools, Walking Trails, Parks & Shopping.

Main Floor features a convenient & open layout  with a Combined Living and Dining Room featuring a 3 Sided Gas Fireplace. The Combined  Kitchen and Breakfast area Bright and maintain an Open Concept as well. Breakfast area features a walk out to the Deck Overlooking the backyard. The Main floor also features a so an easily accessible powder Room and Direct Garage access as you enter the home.

The 3 Bedrooms on the Upper Level are complimented with a large 4 Piece Main Bathroom and a spacious 4 Piece Master en-suite. The Generous master Bedroom has a walk in closet, 4 piece en-suite and a view overlooking the back yard.

The Basement is Finished and Features a Walk Out to the Back yard and is where most of the mechanical components  are located (Furnace Hot Water Tank etc.) and laundry.

Additional Features Include:

  • Double Wide Paved Driveway
  • Custom Built Garden Shed
  • Front Porch
  • New Deck Boards and Railing
  • Custom build master bedroom closet
  • Custom tiled Backsplash