First Foundation’s Best Rates to Open the Week:
1 Year 2.89%
2 Year 2.89%
3 Year 2.79%
4 Year 2.99%
5 Year 3.19%
7 Year 3.99%
10 Year 3.89%
ARM / Variable 2.90%
Line of Credit 3.50%
Qualifying Rate 5.29%
Prime Rate 3.00%
The TSX closed Monday with only slight losses, suggesting that investors aren’t too concerned about the latest issues in Greece’s efforts to come to an agreement on budget cuts before the euro zone delivers the next round of bailout money to help stave off default.
The TSX closed at 12,559.85, down 17.43 points or 0.1 per cent
The Bank of Canada will lower its qualifying rate from 5.29% to 5.14% on Wednesday, making it easier to qualify for variable rate mortgages as well as mortgage terms other than the 5 year term. The five year term is usually the easiest to qualify for as lenders use the actual 5 year mortgage rate to assess an applicants qualifications rather than the higher, qualifying rate.
According to an article in the Globe and Mail , lenders are being warned that they will be watched more closely by the Office of the Superintendent of Financial Institutions ( OSFI) in regards to their lending standards on Home Equity Lines of Credit, stated income products and condo guidelines.
A OSFI report made public last Monday indicated that the bank watchdog is concerned that current lending guidelines in these areas may be too lax. CIBC has recently pulled their stated income product altogether but most lenders are maintaining that their lending practices are already prudent. “Stated income” refers to a mortgage product that does not require traditional proof of income and is utilized primarily by applicants who are in business for themselves. At the moment, applicants do need to have excellent credit, a large downpayment and their business documentation needs to indicate the income the applicant is claiming is reasonable.
First Foundation’s Senior Mortgage Broker, Lisa Last commented that we have not seen any changes to these products by our lenders as of yet.
Do you have any questions about HELOC or stated income mortgage products? Contact one of our licenced mortgage brokers today for expert advice!