Allen Chow
7694 Islington Avenue, Unit 2 L4L 1W3 Vaughan, ON, Canada

Attention: Effective July 1st! Canadians looking to borrow money for a home purchase will experience some extra challenges after the Canada Mortgage and Housing Corporation announced changes to its lending standards on Thursday. The country's national housing agency is increasing the qualifying credit score for mortgage insurance to 680 from 600 and limiting gross and total debt servicing ratios to their standards of 35 per cent and 42 per cent, respectively. "COVID-19 has ex...posed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians," CMHC head Evan Siddall said in a statement. "These actions will protect homebuyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth." Under the changes effective July 1, CMHC will also no longer treat non-traditional sources of down payment funding, such as a personal unsecured line of credit, as equity for insurance purposes. It will also suspend refinancing for most multi-unit mortgage insurance. The move comes just weeks after Siddall appeared before the Standing Committee on Finance in Ottawa to warn of trouble ahead for the housing market. "Our support for home ownership cannot be unlimited," he said. "Home ownership is like blood pressure: you can have too much of it. Housing demand is far easier to stimulate than supply and the result, as we’ve seen, is Economics 101: ever-increasing prices." The majority of mortgages insured by the CMHC will not be affected by the more stringent qualifications. Overall criteria: -Maximum Total Debt Service (TDS) Ratio from 44 to 42 -Gross Debt Service (GDS) Ratio from 39 to 35 -Credit score MINIMUM 680

https://www.theglobeandmail.com//article-cibc-to-lower-cr/

http://td.mediaroom.com/2020-03-17-Canadas-Six-Biggest-Bank

This is bound to happen for most of the provinces. Stay safe, everyone!

We’ve been hearing this for years. Curious to see what will actually happen. The best time to buy (I feel) is always NOW.

The new First-time Homebuyer incentive from the government to officially start in September. Details in the article below:

Decisions, decisions! Fixed rate or variable? This article may help (potential) borrowers decide what’s best for them.

An estimated 47% of Canadian mortgages will be renewing this year. Should you fall into this category, do NOT jump at the first offer you receive from your current lender. Despite the imposed stress test/B20 regulations (on all new mortgages), there may still be other cost-effective options I would love to help you explore. Renewal time is a great opportunity to re-assess your needs and to ensure that you have the right mortgage going forward ... potentially saving you thousa...nds. Contact me to discuss. https://www.mortgagecentre.com/allenchow Allen Chow Mortgage Agent Lic# 14001024 Pilrock Mortgages - The Mortgage Centre Brokerage Lic# 12707

Rent vs. own? Why pay someone’s mortgage when you could be paying your own?!?! The great debate! I’ve come to realize that often times, the obligation of a mortgage keeps people from buying their own home. In reality, even when renting, you are obligated to a mortgage ... your landlord’s. ... Some reasons you should buy instead of rent? 1. With rent going up and interest rates still at an all-time low, renters should consider taking the plunge. It is predicted that in many parts of the country, rent is rising while housing prices are falling, making buying a home much more affordable. 2. Owning a home forces you to ... SAVE! As a homeowner, you have to pay your mortgage every month, so you are routinely putting money away instead of spending it on new shoes or fancy meals. How is paying a mortgage forced savings? If you eventually sell your home after the mortgage is paid off there’s a good chance that, even after the costs of ownership, you can walk away ahead of the game. 3. Unlike rent, a fixed mortgage can’t go up, even if the cost of everything else does. Interest rates are still at historic lows, making it one of the best times to secure a mortgage of your own! Why you should still talk to a mortgage professional even if you are not ready to buy a house? Home ownership isn’t for everyone. If you might move soon, or you want the flexibility to pickup and move cities with just a month’s notice, then renting can be ideal. I would urge potential buyers to first consider the transaction costs of home ownership, which can add up quickly, especially if you are not planning plan to stay put for very long. If you are a first-time home buyer, you may feel like you’re not ready to purchase a house. The three most common reasons people do not apply for a mortgage are less than perfect credit, too much debt or not enough income. If you’re planning to buy a house in the near future but unsure where you stand financially, contact me to go through a pre-home buying consultation. Having that conversation so you know where you stand is extremely beneficial. https://www.mortgagecentre.com/allenchow Allen Chow Mortgage Agent Lic# 14001024 Pilrock Mortgages - The Mortgage Centre Brokerage Lic# 12707

Mortgage agents are definitely not mind readers. The more we know about you, your intentions and needs, the easier it will be to narrow down the search of potential lenders who will be willing to accommodate your situation/requirements. This will also allow for us to make suggestions or provide further advice to get you approved. Need a mortgage? I am here to help. https://www.mortgagecentre.com/allenchow... Allen Chow Mortgage Agent Lic# 14001024 Pilrock Mortgages - The Mortgage Centre Brokerage Lic# 12707

Keep out of trouble with these 7 resolutions to make buying a home easier.