Changes to the stress test rules: what do they mean for you?


Last week, there were big changes to the federal mortgage rules, in what's called the stress test rules. The stress test rules ensure that the homes Canadians invest in are homes they can afford today and homes they'll be able to afford in the future. Today we're welcoming Calgary mortgage broker Danielle Di Marco to the blog to talk about the changes that can affect all Canadians who are in the market to purchase real estate.


Danielle has been a long time friend of KR Group. She was born and raised in Sherwood Park but has put down roots in Calgary with her husband and her three great kids. She lives her passion as a Senior Mortgage Planner, with 13 years of experience and has helped countless KR Group clients make their home owning dreams a reality.


"I take pride in offering objective advice and great rates. The solution I recommend for you will be a mortgage made just for you, carefully constructed to match your unique mortgage requirements. After all, this is one of the biggest financial decisions you may ever make. With so many choices available in the market, a custom mortgage solution will be the basis of your financial plan. My goal is to get you mortgage-free faster."


Here's some deeper insight from Danielle as to what exactly the changes to the stress test rules can mean for you. 



What does this mean?

  • Instead of qualifying at the current 5.19% for a mortgage, we can now qualify at the lower average High Ratio Rate (to give you an idea, right now this would be approx. 2.79%) plus 2%.  
  • This means we can use 4.79% to qualify you for your mortgage instead of 5.19%


How do we qualify?

  • Each week the Stress Test Rate will update, depending on the average High Ratio Insured rate from the week prior.  We then take this rate and add 2% to it, and that’s what we can use to qualify your new mortgage


Why is this better for you?

  • This means you can qualify for MORE house now, at a higher purchase price than we previously, to take advantage of our real estate market
  • On average, you can qualify for an extra $30,000-$50,000 more mortgage than you could before!


How can this help you right now?

  • If I have previously pre-approved you, I can now RE pre-approve you for a higher amount (starting April 6th) so make sure you reach out to me to have your information and Pre-Approval updated.
  • If you are thinking of taking advantage of Alberta’s market right now, and the spring real estate market to upgrade your home, call me and see how we can work together to come up with a financing plan that works.


  

Contact Danielle for more information on the stress test rules and for great mortgage advice. 

www.danielledimarco.com

danielle@danielledimarco.com

403-969-0233

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