NEW 40 YEAR MORTGAGE WITH 5.0% DOWN PAYMENT - GREAT PURCHASING POWER!!
There have been several innovative products come to the market over the past several months, 30 - 35 and now 40 year amortizations for mortgages. This can have a dramatic impact on your buying power, following is an outline of how this can help.
Based on previous standard mortgage criteria, a purchaser with family income $70,000.00 could normally qualify for a mortgage of approx. 4.40 times their annual income. So the income of $70,000.00 per annum would allow the purchaser to qualify for a mortgage of approx. $308,000.00 with 5.0% down payment this would allow them to purchase for approx. $324,000.00. In the Victoria market, this doesn't get them much to start out with as far as a single family dwelling.
A new product is now available allowing the purchaser to use up to 44% of their income to qualify for a mortgage, the 44% also includes any debts. If you have absolutely no indebtedness, we can use up to 44% of your income solely for mortgage qualification. How does this help?
Based on this criteria, you could actually qualify for a mortgage of approx. $442,000.00 plus the insurance premium of 3.75% using the same income of $70,000.00, assuming no debts.
The lender offers fully discounted interest rates as well. You must meet normal qualifications regarding income/employment criteria and self employed must have a three year employment history with Revenue Canada Notice of Assessments confirming ability to qualify. Credit bureau beacon scores must be above 680 as well.
What does this do for you? It just may allow you to purchase a property with additional accommodation and your net payments after deducting the rent from the additional accommodation will be less than if they purchased a home without additional accommodation.
Even though the amortization is over 40 years, its still better than paying rent and they can decrease the amortization as time goes on to repay the mortgage over a shorter amortization period.
Don't delay, call me to set up an appointment to get pre-qualified, it won't hurt a bit!
****Source****
Gerry Smith AACI, P.App.
Manager, Residential Mortgages
Tel. (250) 361-7068
Fax (250) 592-1801