The Mortgage Professionals
1145 Mainland St V6B 5P2 Vancouver, BC, Canada

Big Changes Coming to insured mortgages July 1st Qualifying for a mortgage is about to get harder for anyone who doesn’t have at least a 20 per cent down payment for a home, which is likely to have an outsized effect on first-time buyers. Canada Mortgage and Housing Corporation (CMHC) is tightening its rules to qualify for an insured mortgage. At least one applicant’s credit scores will need to be 680, up from the previous minimum of 600. To ensure borrowers can keep up with... payments, maximum total debt service ratios will be lowered from 44 to 42. Gross debt service ratio drops from 39 to 35. CMHC also says non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes. In other words, buyers will no longer be able to borrow money for a down payment. If you are in the market to purchase in the near future, and do not have the 20% down payment to avoid the insurance requirement, I suggest that you reach out to your Mortgage Professional soon to take advantage prior to these changes coming into effect.

Good news! As of today May 25th, the Bank of Canada’s (BOC) Benchmark Rate has decreased from 5.04% to 4.94%. Although this .05 reduction is not a huge decrease in itself, this reduction does mark a general easing of the Stress Test required by the BOC to qualify for a mortgage. This also marks the lowest the Stress Test has been since October 2017. If you would like to know how this effects you and how much you qualify for, please feel free to reach out to me and I will be glad to help.

Interested in Levelling Up with @garymauris President of @dlccanada and Jim Treliving of the Dragons Den. When? Tomorrow morning May 14th at 11:00 am . These weekly webinars have featured a new celebrity guest speaker every week. They have been extremely motivating for me during these past few weeks, and I expect this one to be just as great as the previous speakers. If interested in adding some valuable insights from two business icons in the Canadian marketplace, click the FREE registration link https://zoom.us/webinar/register/WN_-GyrOVhMTZiPcZxYX_5c6Q

Happy Earth Day from The Mortgage Professionals.