First of all, mortgage rates probably aren't go more until 2018
The new mortgage rules lending guides:
- Qualifying for 5 yrs / fixed 5 yrs if a buyer has less than 20% down payment, although the approximate interest rate is 2.4% the financial institution must qualify the buyer for 4.64%. The new mortgage rules are not new to the private lenders because they always qualify the buyers for 4.64% or higher to lower their risk!
- For an example if a buyer qualified for $625,000 before October 17 2016, actually gets $505,000. An approximate difference of $350 per month.
- TDS / GDS : Calculating Gross Debt Service (GDS)This is a way of estimating the maximum home-related expenses you can afford to pay each month. To qualify for CMHC insurance, the total should not exceed 32% of your gross monthly household income.
Calculating Total Debt Service (TDS)This enables you to estimate the maximum debt load you can carry each month. It should not exceed 40% of your gross monthly household income.
Calculate your TDS