Also, the Gross Debt Service and Total Debt Service ratios that are allowable under these new rules for insured mortgages seem pretty high at 39% and 44% respectively, so that could potentially create some room for movement to allow higher loan amounts and soften the blow of these rules.
For instance, if you have $100K in family income and $500 a month in property tax and heating costs, you'd qualify for roughly $535K with a 2.5% qualifying rate and a GDS of 35%, which is I believe what was the maximum CMHC ratio. It'd be more like $510K if you wanted to be at 33% which is a pretty accepted standard. With a 4.64% qualifying rate and a GDS of 39%, you'd be able to get about $490K in a loan, so not a huge difference compared to before. On paper, you'd have a 39% GDS ratio at the qualifying rate, but your actual GDS ratio would be in the 32% range.
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