Arriving Soon; 25% Less Mortgage Money

New mortgage rules are headed our way this Fall, and they will impact you this time.

Short Version:

As of this Fall (no specific date yet set) you will qualify for ~25% less mortgage money than you do today.

Click here to watch an entertaining mortgage video for some perspective. Seriously there is such a thing as an 'entertaining mortgage video'.

Long Version:

Have you got;

• Excellent credit?
• Huge down payment?
• Loads of equity, net worth, investments, etc?
• A relationship with your bank for 40+ years?

That’s nice, but it is going to be all about your line 150 taxable income.

Not just the dollar amount either, but the source(s);

• Income from liquid investments?
• Income from the sale of assets? (sale of property, stocks, bonds)
• Income from dividends?
• income from a family trust?
• Income from investment properties? (rental income)

None of these are used to 100% of their value, and a few count for just shy of zero.

It is all about employment income, ongoing personal (withdrawn from your business) income, or pension income.

And that income of yours is going to qualify you for 25% less mortgage money this Fall than it does today.

Big Brother is watching us, regulating us, and backing us all into a corner.

Sadly, the key request made by pretty well every single industry association and economist following the abrupt changes made Oct 3, 2016 appears not to have been heeded. The request; ‘No more changes anytime soon’. Perhaps our collective failing was the absence of a clock. - i.e. no more changes until 2022 please.

In any event the upcoming round of tightening, if implemented as set out, will create deeper confusion for people seeking a mortgage. And it will remove many (estimates are ~20%) from the market(s).

• New Purchase
• Move-up Purchase
• Down-size Purchase
• Renovation financing
• Debt Consolidation financing
• Access to home equity financing

Etc.

The bottom line; it is about to get even trickier to qualify.

Thank you