Changes in Real Estate Mortgage

For Agents Jun 03, 2022

One common wish that each one of us has is to buy our own house. However, buying a home involves a lot of things such as house hunting, looking for a professional real estate agent, saving for down payment, getting pre-approved for a mortgage, checking out home buyer incentives and many more.

Savings are essential to pay for the monthly mortgage payment. It is more beneficial to buy a home rather than paying rent over the long term. It is cheaper to buy a house in Canada than it is to rent for a long period of time.
Every payment on the home brings buyers a little closer to owning it. Each payment builds up their equity in that property.

Few changes have been made in the mortgage rates. In order to buy a home in Canada, home buyers will now need to have a credit score of at least 680.

Bank of Canada has increased the prime rate to 1% which means that affordability for any homebuyer will now reduce by 10%.

From June 1, for all Uninsured mortgages (20% and above downpayment) & Insured mortgages (less than 20% down), the qualifying rate is 5.25% (previous qualifying rate was 4.79%). An increase in qualifying rate decreases homebuyers’ purchasing power and reduces the amount of mortgage a household can qualify for.


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Avnee

I am the editor of this blog and I love to write blogs about the Real Estate business. When I'm not creating content, I love to drink coffee, read books and try new things! ❤

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