If YOU ARE thinking of BUYING A RENTAL, a SECOND HOME, or CO-SIGNING with family then this is big news for you if you normally get your mortgage from the Bank.
So, first thing you need to know is one of the top five banks in Canada, in this case, TD Bank, just had a big change to how they qualify someone for a mortgage.
So if you're looking to buy a second property, invest with someone else, or co-apply for another mortgage, TD now considers the entire amount of money that you have available to you in your line of credit as part of your debt.
What does that mean?
Traditionally, when a lender qualifies you for a mortgage, they look at all of your outstanding debt plus the upcoming mortgage payment as a total percentage of your income. Going forward, TD will actually consider all of the money available to you. So a HELOC is a home equity line of credit, which a lot of people have in place and have access to if they're investors, looking at consolidating debt, or just want to have something in an emergency. Traditionally, you only had to cover the cost that you actually had outstanding. So, going forward, as an example, if you have $100,000 available to you, even if you're not using it, and you're looking to qualify for another mortgage, this would actually reduce your qualification by almost $100,000. So
My recommendation is to speak to someone like myself, because there still are other banks that will allow you to qualify on the amount that you're actually borrowing.
My second recommendation is: now is, for a number of reasons, one of the best times to invest in real estate. Interest rates are still low, there are still other lenders that are following the same guidelines, and in addition to that, it is a buyer's market in most parts of the country.
So if you have more questions, and you wanna get set up for a mortgage, make sure to reach out so we can look at your financial plan.
Get in touch!
What To Do Next? 😎
Reach out to us If you are THINKING about buying or Refinancing
Send This Info & Video to everyone you know who is buying or selling or maybe refinancing Remember: they may be thinking of a refinance, investment property OR know a friend who is currently thinking of buying.
Send them our way and we will give them an estimate of their before and after rule pre-qualification.
Contact us early to get ahead of the game, even if your mortgage is not up for renewal until next year.
How to Start Reach US! 📲
More Questions or READY to get started!?