House Buyers To-Do-List before Jan 1st 2018

As our Remembrance Day weekend passes, quality time has been spent with families and community and I now look forward to what’s on the calendar next. What is next you ask? I’ve completed my Stranger Things Season 2 binge so onwards and upwards. The Christmas Season is next of course!… and the looming Jan 1st mortgage rule deadline that will inevitably take up most of our Abbotsford Mortgage Broker Teams December, (I really sucked the fun out of all that Christmas and Binge TV watching stuff)… but we love Mortgages & Christmas so bring it on!

So let’s get a head start on the mortgage stuff with a quick list of things you should prepare and avoid mistakes that can potentially cause a mortgage turns down from lenders at crunch time.

It appears the next round of rule changes, set for Jan 1st, are not as publicly talked about as the previous rule changes that were implemented last year. In fact I’m getting a lot less calls regarding it than I expected.

Last year our phones were flooded with first time buyer inquiries regarding how the changes would impact them and what they could do to prepare. It would seem the repeat buyers with larger down payments are Rodeo Experts now and have other things to worry about. Anyone else just realize we have 5 weekends to get our shopping done? So I understand.
So before the flurry of shopping for houses and shopping for Christmas all hits at once, you should quickly request these items to be prepared:

IMPORTANT: This list will help you obtain a signed mortgage approval before January 1, 2018 and be exempt from the new mortgage rule while qualifying under the current lending guidelines.

  • Ask for a job letter from your employer
  • Know where to get a copy of your paystub
  • Ask your accountant for PDF copies ahead of time: T1 Generals for 2015 and 2016. They may be taking holidays come December
  • Have your accountant provide you your most recent NOA
  • Get a mortgage Print out for your current mortgage
  • Get a rate hold from us and sign the pre-approval

After Jan 1st 2018 every buyer in town can expect

  • A reduced mortgage approval, reducing the potential purchase price for a new home. On average this will bring down buying power by approximately 14%-20%
  • With a 50% down-payment and a secured 5 year fixed rate at 3.19%, buyers would have to qualify on a rate of 5.19% (3.19% + 2% = 5.19%) OR the benchmark rate of 4.99%. Which ever is higher.
  • Buying Power Before January 1, 2018 Example: Household income: $120,000 per year, Down-payment of up to $180,000 (at least 20% down) =MAX PURCHASE PRICE $900K
  • Buying Power After January 1, 2018 Example: Household income: $120,000 per year, Down-payment of up to $180,000 (at least 20% down) =MAX PURCHASE PRICE $800k

Call us if you want to ear mark an approval or just ask a question and let’s see if it is the right time to buy or sell. The easy, hassle-free answer to your mortgage questions.

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