It’s no surprise that mortgage rates are on the rise. Rates have been at an all time low for some time now, but that has and will change again June 1st. The country’s federal banking regulator is tightening rules on mortgage stress test for homebuyers with uninsured mortgages starting June 1.
The minimum qualifying rate for uninsured mortgages – residential
mortgages with a down payment of 20 per cent or more – will rise to
either the contracted rate plus two percentage points or 5.25 per cent,
whichever is higher.
As it stands, any buyer whose down payment on
a home is one-fifth of the purchase price or more has to show they can
afford mortgage payments if the interest rate was two percentage points
higher than what the bank is offering them or the five-year benchmark
rate published by the Bank of Canada, which sits at 4.79 per cent —
whichever is higher.
So what does this mean to you? If you are looking for a property and plan to spend a good deal of time there or moving to the area, this will benefit you. There will be many who sit this season out due to speculative intention. This is a time to buy for the long term, do your homework, and make sure that the area you are purchasing in is what you want.
My name is Ellen Phillips and I am very excited to say I have signed on to work with Faye in this very interesting, exciting, and nuanced field of real estate.
I am someone known to have dipped my toe in so many fields and industries that its hard to keep count. Career “FOMO” if you will.
Learning about something new from the very bottom on up is what fuels me and living in Prince Edward County for the last 4 years has given me such a great opportunity to learn so much from so many passionate, and skilled masters of various crafts. So far I have helped to run a wedding venue, worked in home renovation and home building, worked in an incredible farm-to-table restaurant, been part of planting, harvesting and arranging at a gorgeous flower farm, and now am working to complete my own real estate salesperson courses so that I can really dive into my love of homes, farms, properties, and daydreaming with clients about the endless possibilities that parcels of land can present.
I really look forward to meeting all of Faye’s clients, and playing a part in the exciting adventure that is acquiring a new space, or honouring the one you are passing along.
See you out there!
A once on a lifetime chance to live in a truly historical County home!
See full listing here