Here's an example of the impact the new qualifying rate will have. Amounts are based on a $ 75,000, 5-year fixed term mortgage rate of 3.39%, 25-year amortization, $ 100,000 available for down payment and $ 700 in other monthly debt obligations:
Up to December 31, 2017 After January 1, 2018
Target Rate 3.39% 3.39%
Qualifying Rate 3.39% 5.39%
Maximum Mortgage Amount $ 400,000 $ 325,000
Available Down Payment $ 100,000 $ 100,000
Home Purchase Price $ 500,000 $ 425,000
A customer's maximum mortgage amount, other debt obligations, and credit score.
How will TD manage in-flight applications?
Changes to existing policies and procedures may impact applications initiated before or after January 1, 2018.
Purchase Transactions or Refinances:
Before January 1, 2018 Pre-Approvals committed
before January 1 st will remain valid up to 120 days following the initial credit decision. Approved applications closing before or after January 1 st will remain valid; re-adjudication is required as a result of the qualifying rate update.
On and after January 1, 2018 Any material changes to the request post January 1 st may require re-adjudication using updated qualifying rates. Material changes to the request post January 1 st may require re-adjudication using updated qualifying rate rules.
Additional information will be shared as it becomes available.
- TD Canada Trust
Please contact Michelle Alton, Real Estate Sales Representative for further information.