BUYING THIS SPRING? GOVERNMENT CHANGES APPLICABLE TO PURCHASERS.
Did you know amortization rates are changing from 35 years to 30 years after March 18th, 2011?
Canadian ‘high-ratio’ purchasers will require an accepted offer to purchase in their hands dated no later than March 18, 2011 to qualify under the current rules to keep the 35 year amortization for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.
The purchase must also complete within 90 days of March 18th, 2011 to keep the 35 year amortization.
For example, these are approximate figures…
$500,000 @ 5% for 30 years, P & I payments = $2,684 per month
$500,000 @ 5% for 35 years, P & I payments = $2,523 per month
Difference = $161 per month
READ IT: http://www.cmhc-schl.gc.ca/en/corp/faq/faq_008.cfm
WATCH IT: http://www.ctv.ca/CTVNews/Politics/20080709/feds_mortgages_080709/
Message: … plan ahead! Call or email if I can be of assistance. Thank you!
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