Message from Kevin Huynh Broker, Empire Mortgage Group
April 9, 2021 Real Estate
"Kevin Huynh Broker Empire Mortgage Group" (April 8, 2021)
Hey Trusted Partners,
I hope everyone is keeping well.
I just wanted to give you a heads up and to advise you and your clients accordingly.
I’m sure you’ve heard, but the Office of the Superintendent of Financial Institutions has proposed a new benchmark qualifying of 5.25% as of June 1st, 2021.
The current qualifying rate (which has been in place for over 4 years now) is 4.79%.
These measures are being put in place to slow down a real estate market that has seen a 17% price increase nationally over the past 12 months, and 30% in the top 12 major markets.
At this point, they are targeting 'uninsured' consumers (those with more than 20% equity on a refinance or down payment on purchase), but it's very likely that high-ratio insured buyers are to follow.
How can this affect you?
If you or your clients are looking to buy in the near future, this rise will reduce your affordability by approx. 4.00%. So I would recommend getting having the pre-approval calculations updated.
If you own property and looking to sell, I would recommend acting quicker as I am certain many buyers will be acting before the June 1st deadline. I would not be surprised by a slower period thereafter.
As always, if you have any questions or concerns, please reach out.
Thank you and stay well.
Kevin Huynh
Broker
Empire Mortgage Group
Lic. #M10000909
Broker Lic. #13183
Office: 1.365.317.6247
Mobile: 1.905.531.7399
Fax: 1.888.787.2377
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and to make you a life long fan of The Barbara Beers Team
Direct: (905) 634-2335Office: (905) 634-7755
Toronto: (905) 849-3777
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