It’s official. OSFI has set the new stress test for uninsured (AND INSURED in the 11th hour, ouch) mortgages to take affect June 1st. The new stress test will affect your buying power by 5-10% in a purchasing power.
What does this mean? It means the next 11 days are going to the the worst days of this year to keep up with customer service and keep our reputation in tact. We are going to try everything we possibly can to get you folks locked in to the OLD stress test for the next 120 days. Our turn around times will be as follows:
Accepted offers with condition deadlines
- 4 hour communication updates
- 2-3 business days for approval, we won’t let you down. You all know the BEST way to get to me quickly is text messaging.
- Communication updates: 3-4 business days
- 3-6 weeks for final approval
- The banks are going to get SLAMMED with Refinance applications this week, and they are going to throw them on the back burner to prioritize purchases first. The key is to remember:
- At time of submission, the old rules will be honoured
- Please be patient with these lenders going through the process. It’s just going to take 10 times longer than typical to get the final approval. Please note, we will not be accepting any further Refinance applications between May 27th and May 31st. If you plan to tap into your current equity for future benefit, I can not stress this enough: There will be no better time to do this right now for the next 10 years. You need to get your application in by May 26th. Property values are at an all time high, you need to be proactive, not reactive about this.
Renewal or Switch Mortgages
- Communication updates: 7-9 business days
- 2-3 months for final approval. If your mortgage renews in the next 3-4 months, you NEED to get this submitted by May 31st.
- We are only accepting pre-approval applications between May 21st – May 31st if you are ACTIVELY shopping the market currently and absolutely CONFIDENT you will be purchasing something in the next 120 days. Please, do not submit a pre approval request this week if you do not think a purchase will occur in the next 4 months. ***** If you were pre approved in the last few months/weeks. You need to reapply again to reset the 120 day clock!
As always, we want to continue to earn the business, but we simply have to accept the fact resources will be thin for the next couple weeks. So if any of the following above situations apply to you. We recommend applying, or reapplying no later than May 24th to make sure we can get this locked in for you before June 1st.
Thank you for understanding, you know where to find me. It’s just going to take a bit longer than usual for me to get back to you.