If you are currently pre-approved for a home loan, we recommend you check in with your broker to assure the increase in interest rates has not affected the maximum loan amount you can borrow.
Until recently, lenders had been honoring pre-approved loan amounts. However, with interest rates going up by the month, it is important for you to know that most lenders are no longer honoring pre-approved loan amounts.
As interest rates increase our borrowing capacity decreases. Unfortunately, even with a pre-approval in place, your maximum loan amount will be affected as most lenders are recalculating borrowing capacity based on the increased assessment rate. Please check in with your broker as soon as possible to reassess your borrowing capacity, especially before you put any offers on a property.