Mortgage rule changes coming March 18th 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?
For more information, please call Ralna Burridge at 604-790-7253