New Mortgage Rules - Comox Valley Buyers
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.