Changes to Mortgage Rules
The government today announced three loan financing changes designed to address concerns about increasing levels of household debt. A link to the government announcement is here.
First, the government will reduce the maximum mortgage amortization period from 35 to 30 years.
Second, the maximum amount of the value of a home that can be re-financed will drop from 90 per cent to 85 per cent.
And finally, government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit.
It is important to note, the government did not increase the minimum downpayment, which was under consideration.
Together, these three measures are designed to ensure homebuyers invest responsibly in home ownership and don't risk their financial security by buying too much home for their income or the country's economic circumstance.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.
Copyright © 2011 By Liz Moras, All Rights Reserved. Please do not use without permission. Information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive. It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd.
Comments(4)