If you are buying a home with less than 20% down, you will need to read this.
When your down payment is less than 20%, you have to put CMHC insurance on your mortgage. When this happens, the amount you qualify for will be less, because CMHC will run a “stress test” on your application. They will calculate your application as though you are borrowing at 4.64%, even though you are only going to pay approximately 2.50%. Below is a table showing the difference between what you could have borrowed without the stress test, prior to October 17, 2016, and what you can now borrow with the stress test.
Want to learn more about how the new mortgage rules affect you? Call us at 905-231-3087 today. We can help.
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