mortgage news with a positive twist
Lets share the word
There is some good mortgage news out there in these crazy times.
If you are looking to buy, downsize, transfer or refinance its a great time to investigate the possibilities. There are some new rules, guidelines and products available, possibly putting you in a better mortgage space. It never hurts to inquire. It could save you thousands.
Lets look at mortgage news
With the Bank of Canada rate remaining low we are seeing some great products available through our lenders. Current rates are at historic lows, between 2 and 3%, depending on the type and terms of the mortgage, which we will explain. If you take a look back on the chart above, we are in a good position, on par with 2009-2010 numbers.
Variable are in the prime minus .25% range.
child tax benefit (ccb) changes
Some lenders are currently accepting 100% of the Child Tax Benefit as income. if the child is 13 or younger. CCB payments received are permitted to be reflected as income. With documentation confirming CCB income, you are able to use up to 15% of all the income used in the application. For example if your annual income is $40,000 you are able to use up to $6000 as additional income.
Stress test
The qualifying rate has come down to 5.04%, from 5.19%, which would equate to approximately $10,000 in this example. Clients with combined income of $60,000 with good credit, no additional debt would qualify for a purchase price of $330,000 using the current qualifying rate of 5.04% as opposed to $320,000 when at the 5.19% rate.
cash tight
If you find yourself in need of a little extra cash there are some mortgage options that may work for you. Refinancing to take advantage of your existing equity is an opportunity to look at. If you are looking to purchase and require a little extra to get that back yard in shape, there is a cashback option available (at a higher interest rate). Looking for a little extra cash at renewal time? This is something we can help you with as well.
in closing
It’s not all dark and bleak out there. Houses are still selling. Now is the time to get the work done so when that perfect property comes along you are able to turn it into your dream. Looking to apply a creative twist to your existing equity? Let us know what you’re thinking and we’ll do what we can to help.We work on every aspect of providing our clients with the best opportunities available.Our clients agree, they’ve shared some experiences in our reviews.
