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Mortgage Rules Change January 1st 2017

Mortgage Rules Change January 1st 2017

Don’t Miss The Home of Your Dreams! You will have 18 to 20% less buying power after January 1st.

The federal government is changing the qualification rules on conventional mortgage qualification as of January 1st.  A conventional mortgage is when you have 20% or more down payment.  Now you can no longer qualify at the at

actual rate you will pay, You have to qualify at fictional rate 2% points higher.  That means if you earn $80,000 per year instead of qualifying to buy a $518,000 home you will only be able to purchase a home worth $420,000.  

This is what that would look like in terms of actual homes you could buy. 


Before January First 2017

  • List price $515,000
  • 2 Storey Single Family  in Westmere
  • Built in 2004
  • 3.5 baths
  • Walkout basement developed
  • Backs on to green space and path
  • 2246 sq. ft.
  • View this home here

After January First 2017

  • List Price $419,900
  • 2 Storey Duplex in West Creek
  • Built in 2005
  • 2.5 baths
  • Undeveloped non-walkout basement
  • Backs onto power lines and rear lane
  • 1914 sq. ft.
  • View this home here

No one knows how long this program will last!  Is it the new normal?   Please call us if you want to get the home you want.