Several important announcements were recently made in regards to mortgages and interest rates. These changes affect anyone who is currently or is planning to purchase or refinance a home:
Mortgage Rule Changes:
As expected, on Jan 17th, 2011, Finance Minister Jim Flaherty announced changes to mortgage rules in Canada. These changes will directly affect anyone looking to take out a mortgage on a home or refinance a current home:
1. The maximum amortization period has been lowered from 35 to 30 years for government-backed insured mortgages. This affects mortgages when the down payment is less than 20 percent. This new amortization limit will take effect on March 18th, 2011.
2. Effective March 18th, 2011, the maximum amount that can be borrowed when refinancing a mortgage has been lowered from 90 percent to 85 percent of the value of the home.
3. The government will no longer provide insurance backing for home equity lines of credit. Government backing for home equity lines of credit will end on April 18th, 2011.
The Minister did note that some exceptions will be allowed after these new changes come into force to satisfy a home purchase or a sale and financing agreement arranged before the above-mentioned March and April dates.
Bank of Canada Leaves Key Rate Unchanged
On Jan 17th, The Bank of Canada announced its intent to leave its key interest rate unchanged. This means Canadian lenders are expected to keep their prime lending rate steady. Typically, this prime rate is linked to variable-rate mortgages, variable-rate credit cards, and home equity lines of credit. This does not include fixed-rate mortgages, which are more affected by trends in the bond markets.
When you are ready to relocate to the area, call Eric Putoto! You can find information for buying a Kamloops home at Platinum Realty Inc.
Eric Putoto is the ONLY Canadian Realtor and Brokerage owner to have been granted an exclusive license for the most advance home selling system ever developed: The "Maximum Value Home Selling & Buying Systems."TM