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November 14, 2017

Avoid the New Mortgage Stress Test as of January 1, 2018

By Cantiro Homes

The new ‘stress test’ for conventional mortgages comes into effect on January 1, 2018.

To illustrate, an annual income of $77,800 qualifies for a conventional mortgage valued at $525,000. After January 1, that same income level will only qualify for a conventional mortgage valued at $437,500.2

1 A conventional mortgage is where the loan amount does not exceed 80% of the property value, where the buyer has 20% for a down payment. Alternatively, high-ration mortgages are between 80-95% of the purchase price and require the borrower to pay a mortgage insurance premium.

For illustrative purposes only. Consult your mortgage specialist for rates and further details.