We are hearing more and more everyday on if there is a housing bubble, will there be a housing bubble, and if the government should intervene. Lenders are being vocal on both sides of the coin some agree that by tightening lending rules would have a major negative impact on our economy. Others believe stricter rules would prevent a possible Canadian housing collapse.
I’m sure this debate will continue to heat up as we enter the historically “hot” spring housing market. There are rumors that if there are any changes in mortgage qualifying, chances it will be with those qualifying for a VIRM (Variable Interest Rate Mortgage). Today rates on a VIRM are under 2%, normally customers need to qualify based on a 3 year posted interest rate, and a 35 year amortization. However, lenders may be changing that qualifying criteria in anticipation of guaranteed future rate hikes.
How will this effect me? I want to buy my fist home this summer. Should I buy sooner?
You can get pre-approved and we can hold today’s interest rates for up to 120 days. In the meantime you will have secured a low interest rate, and will not have to worry about any future qualifying changes.