Qualifying Rate Expected to Change to 5.25% June 1st for some mortgages.
We are still skinny on details, but as of now it seems that this will apply to conventional uninsured mortgages. It is expected to reduce purchasing power by about 4%.
If you have a CMHC-type insured mortgage this may not apply. We are waiting on details about whether this will apply to conventional insurable deals like renewals or certain purchases with 20%+ down payment.
Conventional uninsured includes 30 year am, refinances, rentals and property values over $1M.
If other Agents or Brokers have more details, please share what you know as this is happening pretty quickly and will affect Purchase and Sale Agreements or refinances/renewals dated June 1 or later.
Edit: Some lenders may not distinguish between Uninsured and Insurable. If so, expect this to affect every mortgage except those insured with CMHC/Sagen/CG.
Getting a mortgage is like writing a test...except you're allowed to work with someone who knows the answers!
Real Mortgage Associates (FSRA #10464)