It’s all about Affording the Monthly Payments ie Qualifying at Bank
Yep – the Real Estate Business IS the Finance Business — if you cannot Finance it, you cannot sell it!
Average TREB Price $750,180 – 75% Mortgage =$562,635
Variable Rate Mortgage at at 2.95% means P & I Payments are $2,648.21 + Tax $317 = $2,965PIT —–Qualifying Gross Family Income is $118,600
Qualifying at Gov’t-approved 5 Year Rate (B20 Rules) of 5.34% means P & I Pymnts are $3,393.25 + Tax $317 = $$3,710 PIT ——Qualifying Gross Family Income is $148,140
24.9% Higher Income Required