“Mortgage rate stress test” for all insured borrowers

Mortgages with less than 20% down-payment, all need to be insured.
In the past, in order to be sure that new homeowners can afford their mortgages, even in the event that interest rates were to go up, mortgage insurance rules required that lenders “stress test” a borrower’s ability to make their mortgage payments at a higher interest rate. Currently, this only applies to those insured mortgages with variable interest rates or fixed interest rates, with terms less than 5 years. Effective October 17th, 2016, this requirement will apply to all Insured mortgages, including fixed-rate mortgages with terms of 5 years or more. It should be noted that Homeowners with an existing insured mortgage, or even those renewing existing insured mortgages are not affected by this measure. This will make a big difference to those borrowers who are border-line at satisfying the TDS (total debt service) and GDS (Gross debt service) ratios that the lenders use to qualify borrowers. If you are thinking of buying or selling, feel free to contact #Claire Weston anytime.

Single Story For Sale in Wasaga Beach, Wasaga East

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•  1,185 sq. ft., 2 bath, 3 bdrm single story$329,000 CAD. Great Offering!

– Nice and tidy 2 + 1 bedroom home with semi en-suite, with fully finished basement including 3 pc bath and family room with gas fireplace. This home was well cared for and has a fenced yard with treed rear lot line backing onto Birchview Dunes Elementary School. Not many homes with this much to offer in this price range. Property is being sold in an “as is“ state with the Trustee making no warranties or guarantees whatsoever

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