"Should we be Stressed about the Stress Test?"

*Information from Luisa Hough*


"As we expected, further to the Original Announcement  in early April, the June 1st stress test has officially increased for home purchases as well as for those looking to refinance. This will decrease their borrowing power by approx. 5%.

For Example, if you were approved for a $900,000.00 purchase price, it will now be reduced to approx. $855,000.00. Is it something to stress about? For some yes… it’s disappointing especially for our first-time homebuyers who are already struggling to purchase in our crazy market between the $500,000.00 to $700,000.00 as now it reduces them by 5% (between $25,000.00 to $35,000.00). What I have been personally seeing is that clients are getting parents to help not only with the financing but with their down payments as well. So, to answer the question – should we be stressed?  – I’m saying NO, not at this time.

Some GREAT points to keep in mind:

  • Rates are still near record lows, and the Stress test change does NOT increase the client’s borrowing costs.
  • All lenders have different sources of income they will utilize to help clients qualify for the mortgage that is right for them. We have also seen lenders step up in many different ways, and most recently with a special First Responder Program. (Lower rate and cash back offer)
  • As an unbiased mortgage broker, we protect client’s credit by reviewing all the options by all the lenders in the country to find a mortgage that best suit their needs with the best value for them. WE have access to over 60 Lenders with unique products that are only available to us as licensed professionals."

For more infromation please Contact Luisa Hough through her website: https://www.luisahough.com/contact. Or from the information below.


In addition, if you are interested in a Rental Home, there is a new "Rental" tab on my website! I'm here to help you post the home/apartment you are trying to sell.


Monica Donetti,

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