If you’re planning to buy a property, it’s absolutely essential to know how much mortgage you qualify for – based on the Mortgage Stress Test rules. Getting a pre-approval in writing before you start house hunting allows you to make an offer to purchase with the confidence of knowing exactly what you can afford – and helps you avoid the legal penalties of not being able to close the deal.
The Mortgage Stress Test introduced in 2018 has definitely reduced buying power, where many buyers may not be able to afford their dream home. Instead of delaying a purchase until you can afford a larger property, it would be wise to get into the market in a smaller home that you can afford today. Historically, the cost of owning real estate has continued to climb. With the arrival of Spring and interest rates being relatively low, it’s a good time to make a purchase. Being invested in the market will allow you to build equity and capture gains as property values will most certainly continue to rise.
Whether you’re a first-time buyer or looking to upsize or downsize, the team at InTouch Mortgage Solutions will help you understand how the stress test impacts you, and how you can improve your overall score and buying power. They work with a wide range of lenders and understand each lender’s criteria. These mortgage experts will coach and advise you on how to get you into homeownership or purchase your desired property by reviewing your financial situation before you buy. They work to find you the best available mortgage terms and rate for your situation — saving you money.