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New Mortgage Qualifying Rules

December 14, 2021 By balwinder

Are you ready for New Mortgage Rules?

On Tuesday, October 17, OSFI (Canada’s Office of the Superintendent of Financial Institutions) announced new mortgage qualifying rules which will come in effect from January 1, 2018.

According to the new rules everyone who are applying for mortgage without mortgage insurance, have to pass through the “stress test” on their qualifying income. Currently, this test is only for insured mortgage-applicants with less than 20% down payment. But as per January 1, 2018 it will be extended to every uninsured applicant, even they are paying more than 20% down payment.

Under the new mortgage rules, all the buyers who don’t wants to buy default insurance because they are putting 20% or more down payment will have to qualify for mortgage at the Bank of Canada’s 5-year benchmark rate (currently 4.89%) or contractual mortgage rate + 2%. Whichever is higher.

So, if you are applying uninsured mortgage by putting 20% or more down payment, you still have to prove that you have enough income and you will be able to repay mortgage through regular payments in future even if the mortgage rate goes higher than the five-year benchmark rate or in the situation of other financial difficulties.

How it will affect the Home Buyers?

Certainty, these tighter lending rules will lower the purchasing power of the home buyers.

According to the Economic analysis from the BCREA, “The impact of the new stress test requirement will be to lower the purchasing power of households by up to 20 per cent.”

So, due to new rules buyers will get smaller mortgage amount approvals, which may not be sufficient to purchase the property in the cities like Vancouver and Toronto even the other neighbouring cities in these regions.

If you are thinking to purchase a house for your family soon, give me call at 604-349-9149 to get more details about new mortgage qualifying rules.

Buying A New Home

November 14, 2021 By balwinder

Thinking to buy a new house?

It must be most exciting time for you and your family but before you start looking a house for your family here are some things you must consider…

Are you Financially Ready?

Buying a home is one of the biggest purchase you will ever make. But before you buy make sure you are ready for it financially and mentally.

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Selling Your Home

October 14, 2021 By balwinder

Thinking to Sell your current home and you wants to sell it fast for top dollars, here are some tips for you to consider ..

1. Make Your House looks Inviting:

Buyers starts judging your house as soon as they are entering in your front yard. First impression, last impression applies here, it’s very important that you make your house appealing to the buyers. Exterior of your house is as important as interior of the home. Make sure trim the grass, put some nice flowers and plants. Refresh your entryway with new door-mat, paint the front door if necessary, make sure house number plate and mail box are not broken, these small things won’t cost you much but make it more inviting.

2. Make quick fixes if Required:

They won’t cost you too much but they will add up the value of your house in the buyer’s eye. You don’t have to make unnecessary major upgrades instead, putting fresh coat of paint (avoid dark color paint it will make house look small and dark), replacing dated light fixtures, changing broken door knobs and leaky faucets, replacing old curtain with new ones will give your house a nice facelift and will make it more welcoming.

3. De-Clutter and Clean up Your House:

Cluttered house appears small, so make sure you put the stuff in the storage that not in use at the moment and just holding the space in your house (for example, bulky furniture, toys, extra cloths, kitchen stuff…etc.). Donate the stuff that you are never going to use again. This will make your house look bigger and open. Buyer’s eyes will go everywhere, don’t think they won’t notice the dust on the base boards, so make sure to clean every nook of the house. Don’t forgot to clean sinks, bath tubs and all the windows. Take down old drapes, allow the light comes in, do everything to bright it up.

4. De-personalize it:

Once you are decided to sell your current home, treat it like it’s not your home anymore, it’s a property that you want to sell so, de-personalize it, means remove your personal items like, family pictures, wall art that represents your personal taste and belief, because these items make visitors feel like they are entering into someone else’s home, they are going to have hard time to believe that it can be their home. By removing those items, you are giving them chance to imagine that it can be their home.

5. Make Over with Nice Inexpensive New Accessories:

Remove old oversized and dated accessories and put some new ones, like new area rug, new throw pillows, nice wall accessories. Wall mirrors makes small rooms look bigger and brighter. Put new or clean linens…etc. Just keep in mind you are not over loading it.

6.Price it Right:

Now you have made your house presentable, it’s the time to put FOR-SALE sign on. Make sure you are not over pricing it. By over pricing your house, you are pushing potential buyers away from the sale of your property. Your Realtor will do Comparative Market Analysis for you which will help you to pick the realistic price for your house.