Mortgage Regulations and Affordability

2016-10-14 | 11:48:55

Joel's Mini Blog: 
In the News this week - 

Hi Team,

Lower rates this week. see below

Also, 2 most important points regarding new Mortgage regulations.

  • Clients Qualify 20% less than their MAXIMUM mortgage value, (Clients should be still ok to qualify for a mortgage and it's healthy for the economy in the long run (I expect theses changes to ease in the future in case mortgages slow too much)
  • CONTRACTS written before Oct 17 will be underwritten under the old rules by the Banks.

To place this into perspective, in 2008, fixed rates were 5.99%. This is still much higher than the current qualifying rate of 4.64%. Interest rates that borrowers will actually get are still expected to remain near record lows.

Let us simplify the whole process of learning the new rules and regulations implemented by the 

NOTES: 32% of the indicated gross income is used to calculate the borrowers maximum shelter expenses such as mortgage payments, taxes, utilities and condo fees. In addition, the chart assumes that borrowers spend no more than an additional 8% to 10% of their gross income on non-shelter debt obligations.
This data is for information purposes only and should not be relied upon without verification by contacting your MCC Mortgage Consultant. The above discounted rate is not an offer or a rate commitment. APR assumes no fee(s) apply. Should any fee(s) apply the APR would increase.
The above information is based on a 25 year amortization period

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