Attn 1st Time Home Buyers! Your Pre-approval will Likely Be $30k+ LESS after Jun 30-20!
On June 4th, 2020 CMHC announced it will be tightening its mortgage qualification guidelines effective July 1st, 2020. What’s changing and how could it impact you?
To help first time buyers just like you about to purchase their Mississauga, Oakville and West Toronto dream home, take advantage of the short window of time before July 1st, 2020, to avoid a $30 to $60k potential reduction in the amount of their approved mortgage, a free report entitled “CMHC Tightens Mortgage Qualification Rules. What does it mean for you?” has been compiled. It explains the issues involved and action you need to take today!
Here is the first portion of this free report.
Let’s dig into the details:
Backgrounder: Who is CMHC and what do they do?
- CMHC (the Canadian Mortgage Housing Corporation) is a crown corporation that among other things, helps to provide mortgage liquidity in the real estate market. For a cost (premium), CMHC provides a guarantee to the lender that they will cover any losses if the client defaults on their mortgage. This is called “mortgage default insurance”. The existence of this insurance allows lenders to issue more mortgages and help more Canadians than they otherwise could.
- If a lender wants to insure a mortgage, the borrower and subject property must meet CMHC’s mortgage lending guidelines.
- For mortgages with under 20% down payment (“Insured Mortgages”), the borrower/client pays the cost of the mortgage default insurance.
- For mortgage with 20% or more down payment (“Insurable Mortgages”), if the lender wants the default mortgage insurance protection, the lender will typically pay for the cost of the mortgage default insurance.
- Typically, Insured or Insurable mortgages will have a lower mortgage interest rate than uninsured mortgages because of the default protection guarantee.
- In addition to CMHC, there are two private corporations that also offer mortgage default insurance – Genworth and Canada Guaranty. Their qualifying lending guidelines are very similar to those of CMHC because the government provides a level of protection to these companies as well.
How could these changes impact you?
While it is difficult to forecast how these changes will impact the real estate market in general, it will definitely have an immediate impact on clients looking to purchase a Mississauga, Oakville or West Toronto home with less than 20% down, and may also impact those with more than 20% down if they want an insured mortgage (to take advantage of insurable rates). We estimate the impact will be about a… {continued in the full report…}.
To help first time buyers just like you afford to purchase their Mississauga, Oakville and West Toronto dream home, take advantage of the short window of time before July 1st, 2020, to avoid a $30 to $60k potential reduction in the amount of your approved mortgage, a free report entitled “CMHC Tightens Mortgage Qualification Rules. What does it mean for you?” has been compiled. It explains the issues involved and action you need to take today! You’ve just read the first portion of the full report in an effort to draw attention to this very important topic.
If you’d like to receive the COMPLETE FREE report entitled “CMHC Tightens Mortgage Qualification Rules. What does it mean for you?”, including the actions you need to take today (i.e. well before July 1st 2020), you can get INSTANT ACCESS to a FULL COPY of it for FREE by clicking here or calling Bill at 416-671-0554.
Thank you for reading this weeks blog and Go Serve Big!!!
Kind regards, Bill
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To learn more about Outline® Financial or or to secure current mortgage/home-secured lending options and analysis, please contact Ruth Akierman, Mortgage Agent, of Outline® Financial (www.Outline.ca) please email her at Ruth@Outline.ca or call anytime at 416-455-2314 or 403-667-5157. Outline® Financial is a top-rated mortgage and insurance company offering a host of rate and product solutions from numbers banks, credit unions, mon-line lenders, and insurers all in one convenient service. Outline® was formed by senior level bankers and financial planners that wanted to offer their clients choice with an exceptional service experience.
To speak with Bill Gardiner Realtor® of Royal LePage Real Estate Services Ltd., Brokerage WaterNestSeekers based out of South Mississauga Ontario’s Clarkson Village (www.SoldByBillGardiner.ca), please email him at Bill@WaterNestSeekers.ca or call anytime at 416-671-0554. Bill believes that you deserve better from your Ontario Canada Realtor®. It is his team's mission to provide the highest quality, innovative, and exceptional full service real estate service available anywhere in Ontario Canada's beautiful Mississauga + Oakville + West Toronto communities. Here are the 8 BIG reasons to meet with Bill’s team before meeting or committing to using any other agent. You have everything to gain by having better information / options so you can make wise decisions in your best interest - and nothing to lose. It’s FREE, no obligation and you don’t have to sign anything.