By: Tuan Tran
New Stress Test Coming to Toronto, What's It All Mean?
Tags: Toronto, Real Estate, Ontario, Government, Bubble, Stress Test
You may have heard or read that the Office of the Superintendent of Financial Institutions announced last Tuesday that a new "stress test" would be coming to the Toronto housing market, beginning in full on January 1st, 2018.
But what does that mean for you?
For those of you who are wondering how the new mortgage stress test is going to impact you, here are a few quick examples:
1. First Time Buyer is qualified for $400K mortgage. On January 1st, they will now qualify for $320K.
2. Move-Up Buyer is currently qualified for $750K. They will be reduced to $600K.
3. Luxury Buyer is qualified at $1.5MM. On January 1st, they will now qualify for $1.2MM.
If you're thinking of buying or selling or even investing, give us a quick call and we can talk about what your next move should be!