If you are in an adjustable-rate mortgage (ARM), your variable payment will increase by about $30 for every $100,000 borrowed on your mortgage.
If you are in a fixed rate mortgage- you will see no change.
If you have a home equity line of credit (HELOC) - you will see an increase to your minimum interest only payment.
If you are in a variable rate mortgage (VRM with a static payment) - your static variable payment may be close to its trigger rate and therefore trigger point.
In explanation, if you have reached your trigger rate, this means you are now making interest only payments. Therefore, to remain on track with your amortization, your options may include increasing your monthly payment, changing your payment frequency, or putting a scheduled lump sum down to stay ahead of your principal payments. You may also have the option to continue with your static payment and pay down interest only. Click here to learn more on Variable Rates & Trigger Rates. https://www.boychukmortgages.ca/
If you are approved but have not yet completed (funded) - you will NOT have to re-qualify. If you are in a fixed product, there is no change; whereas, if you are in a variable product, your new rate and payment will be reflected on the paperwork at the lawyer’s office.
If you are pre-approved - your qualifying power “may” reduce depending on your pre-approval, put in place. If you have a fixed rate hold on your pre-approval, your qualifying power will remain the same, assuming your purchase completes by the rate hold expiry date. If you have a variable rate hold on your pre-approval, it is best to reach out to us so that we can confirm what your maximum borrowing power is based on the change to prime rate.
