Blog by Jakob Christoph

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New Mortgage Rules - Comox Valley Buyers

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All clients purchasing with less than 20% will be expected to qualify at the 5 year BOC Benchmark rate (4.64% currently).

How does this effective our average local buyer? Here's an example of the impact of the new rule:

Currently a client making $50,000.00 verifiable, gross annual income (assuming no or minimal other debt) would qualify for an approximate purchase price of $300,000.00 with a $15,000.00 (5%) down payment.

As of October 17, the same client will qualify for an approximate maximum purchase price of $235,000.00 with the same $15,000.00 down payment.

The new rule has effectively reduced that particular individual's purchasing power by $65,000.00.

Contact your Lender ASAP to see how this will effect you.