On October 15, 2020 the Bank of Canada announced, that they will stop the Canada Mortgage Bond Purchase program in the week of October 26, 2020. In their explanation the bank stated, that improved
The government's new stress test updates
Dated: February 21 2020
Views: 216
These new rules will be in force starting in April
The Department of Finance says that as of April 6, the stress test will be calculated in a new way. This will allow first time home buyers in the Fraser Valley to have better access to lending, when they are shopping for their first home as well as make it easier to secure financing for all Canadians.
The government came up with an idea to attach the new rate for stress test calulations to the "weekly median five-year fixed insured mortgage rate + two per cent."
Overall this should make it easier for customers to qualify and enjoy a more accurate gap between the posted rates and the true rates achievable in the current markets.
It also will boost buying power, even when it only does that ever so slightly, the consumer will be able to secure a higher priced property.
In an example we see the following:
Buyer with annual income of $100.000.- with 10 per cent down would qualify at a mortgage rate of 2.89 per cent and could buy a home valued at $511.424.- under the old rules. The new rules allow that same buyer now to buy a home up to $526.632.- - wich represents more than $15.000.- more purchasing power.
All in all this is good news for real estate interested parties in the Fraser Valley and these rules apply in all cities including Chilliwack, Sardis, Rosedale, Agassiz, Harrison Hot Springs, Yarrow, Abbotsford, Langley, Mission and Maple Ridge.
If you would like to know more, call, text or email the IMPACT Real Estate Group at 604-832-9663, info@impactrealestate.ca or visit us at www.impactrealestate.ca for more info.
Frank and Sherry Heitzer
Frank and Sherry Heitzer are partners in business and in life. While Frank was born and raised in Regensburg, Germany, Sherry was born and raised in Langley, BC. Both of them started their working liv....
Latest Blog Posts
This pandemic has put a huge amount of uncertainty in us. Will I keep my job or what happens, when one of my family members gets sick? How much stimulus will be provided and is the government gonna
If you are only slightly interested in real estate or news, you most likely have been receiving contradicting messages regarding the housing market in Canada. The headlines so far have offered
In recent past, the CMHC (Canada Mortgage and Housing Corporation) has started to double down on their idea, that the housing market in Canada, especially in hot markets like Toronto and Vancouver
Copyright 2021 by the Real Estate Board of Greater Vancouver, Fraser Valley Real Estate Board, Chilliwack and District Real Estate Board, BC Northern Real Estate Board, and Kootenay Real Estate Board. All Rights Reserved.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned
