Hi, I had the pleasure of appearing on Radio Real Estate Show, AM650 Saturday morning from 10-11:00am, this is what I had to say……
Good Morning Tom, Good Morning Sheri,
The Minister of Finance recently announced changes to high-ratio government guaranteed mortgages. I am talking about a mortgage where you are putting less than 20% down and the rate used to qualify you for a VRM.
This week I worked with a client who has been impacted by these changes. She had full intentions of securing a variable rate product for her first ever mortgage. She had done her research and was confident in her financial decision. The only problem she went out and committed to a new car lease before buying the home.
Prior to April 19, the lender would have used their 3 year rate to qualify her and she would have qualified for the variable rate product. With the higher qualifying rate, today it is 5.99%, she no longer qualifies for a variable rate mortgage. She has been approved for a 5 year fixed rate mortgage of 4.39% which is a great rate, that’s 2.49% higher than the VR.
If you are thinking about buying a home, do not go out and buy or lease a car! It could cost you more than you had planned! Call me first, let’s develop your mortgage plan !
This is Karen Boies for Radio Real Estate
I am a mobile mortgage planner in Greater Vancouver. I am honored to work with you to help you understand the home financing process! I want to help you make financial decisions that you are comfortable with and that save you money in the long run. If you have any mortgage related questions, please call me at 604-726-9550 or email me at Karen@mortgagecentrebc.com
