Understanding The Rules For A First Time Home Buyers Loan

The new mortgage rules have made purchasing a home more complicated for first-time buyers. There are more variables that affect an approval such as qualifying rates and size of down payment. Mortgage brokers will help you understand what you need to know about obtaining a first time home buyers loan under the new rules.

Larger Down Payments Required

You may have seen in the news that larger down payments are required, however first time home buyers are still able to put 5% down. In the event, that your home purchase exceeds $500,000, your down payment for a first time home buyers loan will be slightly higher than 5%.

Mortgage Stress Test for Qualifying

You may have also seen in the news articles about a mortgage stress test. This change for qualifying requires borrowers to qualify at the Bank of Canada posted rate (also known as the benchmark rate) instead of the rate on their mortgage contract. This will reduce the amount you will qualify for when applying for a first time home buyers loan.

Stricter Rules

To obtain a first time home buyers loan in Spruce Grove , it is important to ensure that your credit is in good standing. Past credit history is just as important as current credit history. This extra scrutiny by the banks makes it even more important to get pre-approved by a mortgage broker before starting the search for your new home.

Qualifying for a First Time Home Buyers Loan in Spruce Grove

The mortgage qualifying rules are changing constantly, but that doesn't mean your dreams of home ownership are out of reach. Contact a mortgage broker to assess your ability to qualify for a first time home buyers loan.