More mortgage rule changes for Canadians 2011

Mortgage rule changes coming March 18^th 2011.

• Max amortization on government insurance (CMHC) backed mortgages (CMHC deals) = 30 yrs
• Max Loan To Value on refinance = 85%
• No government insurance backing (CMHC insurance) on secured credit lines
• 5% down remains the minimum downpayment (unchanged - this was rumoured to be going up to 6-7%)

How does this affect your Buyers? Example below: 

Buyer earning $72,000 can qualify for a mortgage of approx $508,000 under the current rules and interest rates...under the NEW rules with a maximum 30 year amortization, that same person now qualifies for $470,000 which is a reduction of $38,000 or roughly 7.5% of mortgage purchasing power.

Will new mortgage rules trigger winter buying?

http://www.theglobeandmail.com/report-on-business/economy/housing/will-new-mortgage-rules-trigger-winter-buying/article1872727/

For more information, please call Ralna Burridge at 604-790-7253