Mortgage 'stress test' brings winter real-estate spike- December 30, 2017
Ottawa home buyers rushed to seal deals ahead of strict new mortgage rules that kick in Jan. 1
Frank Napolitano sits down with CBC to discuss how the new rules are impacting his clients.
In an effort to prepare his clients for the changes that lay ahead for 2018, Frank and his team had started qualifying homebuyers on the new rules which require all mortgages to qualify at the rate negotiated as part of their mortgage contract plus two per cent, or the average five-year posted rate of 4.89 per cent — whichever is higher.
There was a surge in home sales around the Ottawa area over the last two months of 2017 with buyers hoping to get ahead of the rule changes; something that is unusual for the late fall and winter months. Ottawa Real Estate Board President Ralph Shaw states the luxury market in Ottawa will feel the stress test implications dramatically.
Wondering how the new rules affect you? Contact your Mortgage Broker to discuss the details.