We are in the news again! Derek Scott of the Canadian Press interviewed Mike regarding the New mortgage rules coming into effect on April 19th. The story – New rules for rental properties could squeeze first-time homebuyers -  has been picked up by numerous newspapers, publications and blogs.

The focus of the interview was on how the new rules will make it more difficult to quality for a mortgage.  In a nutshell … the old rules allowed 80% of rental income to be used when qualifying for a mortgage. The new rules have dropped the amount to 50%. Additionally, the rental income will not be allowed to offset the monthly mortgage payment, but will be added to one’s annual income. This means applicants must qualify for the total mortgage amount.

Here’s one version of the Canadian Press article.

How will this affect our customers?  Depending on the number crunch, some people may not be able to make the transition from condo to house … even with the rental income.

However, we do urge you NOT to give up and assume you will not qualify. It really is a combination of your income, the rental income and the amount of your down payment.  DO give us a call and let US do the number crunch for you. We will do our best to make it work under the new rules.

604-736-1855

This entry was posted on Monday, April 5th, 2010 at 3:34 pm and is filed under Buying a Home, Mortgage News, Real Estate in Vancouver. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.