New and updated Mortgage Qualification tools may have some buyers pushed out of the Toronto condo and housing market regardless of the interest rates. You could be affected if you are;
Stated-income products have become very popular during this housing boom, allowing more banks to get involved in loaning to the selfemployed.
"These are individuals that are self-employed, have great credit and won't be able to validate their ability to pay if they are not showing their income on their notice of assessment," said one source.
He says those people with stated income could have to make an even higher down payment than the normal 20% that exempts consumers from buying expensive mortgage default insurance.
The suggestion the government might crack down on condo buyers is not new, having been scrapped last year in favour of tougher new rules on amortization lengths and refinancings. Most people in the real estate sector now believe amortizations will be reduced to 25 years after having been as long as 40 just three years ago.
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