As we all know, the Bank of Canada rule shift back in April of this year deemed that mortgage applicants have to qualify at the 5-year BoC posted rate of 5.79% for terms less than 5 years as well as adjustable/variable terms.

In the case of 5 year terms, we can use the going market rate for that term.  For us, our clientss get 3.99% because we’re AWESOME!

Something new that slipped through MANY cracks this morning?

This morning’s rate sheet from one of our lending partners shows that rates for their 7-year term and 10-year term are as follows:

-          7 years: 5.15%

-          10 years: 5.49%

The BoC ruling also stated that for fixed terms greater than 5 years, you can qualify at the term’s face rate 7 or 10-year terms.  SO: if you’re having some difficulty in qualifying at the 5.79% rate, you could choose to go this route with the longer term/lower rate scenario.

Something else: We can also use 7- and 10- year terms to qualify you for cashback mortgages … although the lenders that are offering the 5% and 5.5% cashback terms on the same competitive basis yet, if they decide to continue downwards on this same long-term rate trend, this could make the whole process THAT much more interesting and beneficial for those purchasers that want to use the cashback mortgage as a tool!

To your financial growth and success,

James C. Tworek and the Trimor team!

www.trimormoney.com

403.802.7207