Attention Buyers!
As of Monday, May 14th, 2018, the minimum qualifying rate for mortgages increased from 5.14% to 5.34%.
This will decrease the total mortgage amount you will be able to qualify for.
Just as a side note, one year ago the qualifying rate was 4.64%.
To give you an idea of how much impact this has, a couple with a $120,000 household income would have qualified for a mortgage as high as $800,000 a year ago.
Today, that same couple would only qualify approximately for around $600,000. That’s a 25% drop!
Read more about it in this article of the The Financial Post .