Marleane Maxwell

Office: 604-530-4141 |

ANOTHER EXAMPLE OF HOW CHANGES AFTER JAN 1, 2018 WILL EFFECT YOUR BUYING POWER.

Example – If You placed a 50% down-payment and secured a 5 year fixed rate at 2.99%, you would have to qualify on a rate of 4.99% (2.99% + 2% = 4.99%) OR the posted benchmark rate.

 This would result in reducing the mortgage amount you would qualify for, therefore reducing the potential purchase price for a new home. On average this would bring down your buying power by approximately 14%-20%.

 Buying power before and after January 1, 2018

 Buyers have a household income      is: $120,000 per year.

  • A down payment of up to      $180,000 (if you are putting at least 20% down)
  • $120K      Annual Income/20% down 

Today:    

  • 5 year fixed rate, 2.99% 
  • A      30 year amortization.    

= Max Purchase Price $900K    

With a down-payment of $180K = MAX MORTGAGE $720K

 After Jan. 1, 2018:

  • 5 year fixed rate, 2.99% + 2% =      4.99% OR posted benchmark rate (whichever is greater)
  • A      30 year amortization     

= Max Purchase Price $800k    

With a down-payment of $180K = MAX MORTGAGE $620K

 

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.