Rates & Rule Changes

Rates & Rule Changes

Due to the recent Government Rule changes, putting a large down payment on a home in Edmonton doesn’t mean you get the best rates anymore. Savers with a larger down payment literally get you a higher interest rate than someone who puts less than 20% down payment.

Within the last 6 months, the government has made drastic rule changes which really complicate the residential mortgage world by having borrowers qualify for a Stress Test. The current Stress Test for insured mortgages is now 5.34% for people putting less than 20% down payment and 5.79% if Edmonton Home Buyers are putting 20% or more down payment.

Sadly, this Qualifying Stress test has affected many as 6 months ago they could have qualified for their dream home only to realize that today they do NOT.

Whether you are purchasing a home in Edmonton or possibly have a mortgage coming up for renewal, be prepared to answer a bunch of questions. Mortgage Lenders and Brokers literally have a chart of rates to choose from based on different criteria. If it is owner-occupied, originally insured and up for mortgage renewal, it is a completely different mortgage rate than for a property that was purchased with 20% or more down payment.

If you are looking for the best mortgage rates be prepared to answer just a few of these questions:

What is the purchase price or approximate value of the home?
What is the amount of money available for your down payment or what is your current mortgage balance?
Is it your primary residence or a rental property?
Are you buying a new home, refinancing your property or moving your mortgage from one lender to another for a different mortgage rate?

Purchasing a home is the single largest investment you will make, it is a complicated world out there for acquiring a new mortgage, negotiating a mortgage renewal or refinancing your mortgage to pay down higher interest debt and freeing up cash flow. Seeking out the experience of a Mortgage Broker who has access to more options allows for a greater chance of success.

Eva Neufeld is a 17 year Edmonton Mortgage Professional, published author of “Home Buyers Handbook” The Insider’s Guide to Saving Money and Eliminating Risks when Buying a New Home. With Eva’s extensive knowledge and experience, you can put your trust in this seasoned Edmonton Mortgage Professional. Contact her at eva@mortgagetailors.com or MortgageTailors.com or by phone at (780) 244-0505