Long Cheng TD Mortgage Specialist

Mortgage specialist with TD Canada Trust working in Metro Vancouver. Brings prestigious customer service and suitable financial advice to assist with purchasing your dream home. For inquiry, please call 604-396-1034, or email at long.cheng@td.com

 

Essay:

Recently there has been changes in the mortgage rules that have made the adjudication process harder than before. Clients need to be more financially prepared when it comes to financing a home. Here’s a snapshot of what the changes are:

 

What is the Bank of Canada benchmark rate?

BOC has raised the conventional 5 year rate from 5.14% to 5.34%. This means, when client’s actual rate plus 2% is lower than 5.34%, the bank will use 5.34% to qualify client’s borrowing ability. If client’s actual rate plus 2% is higher, then the rate will be used to determine their borrowing ability. For instance, if client’s actual rate is 3.39%, the bank will use 3.39+2=5.39% to qualify instead of 5.34%.

 

  • Watch For Mortgage rate changes

Currently 3-5 year fix term are higher than before by 0.1-0.15 due to a recent increase. However, 1/2 year fix and 3/5 year variable are still very strong.

 

Also, a quick wrap up on some ongoing policies:

 

  • New Immigrants Mortgages

TD is still one of the few banks that offer new immigrant mortgage programs. Being on title, employment status and liquid assets are all taken into consideration.

 

  • Rental Incomes & How They Affect Mortgage Rules

If client is only purchasing one rental property and that will be the first investment property client owns, rental income will be discounted by half to offset the associated expenses (strata, utilities, property tax) except the mortgage payment. If client owns multiple properties that have legal suites to rent out, rental income can be used at 100% but we have an internal system to deduct the costs. So don’t assume a rental income figure and then everything can be offset.

 

 

Long Cheng | Manager, Mobile Mortgage Specialist | TD Canada Trust

Surrey BC Canada (Will travel Metro Vancouver for your business)
(T) 604 396 1034 | long.cheng@td.com