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More mortgage rule changes for Canadians 2011

By
Mortgage and Lending with The Mortgage Centre

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?

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

Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

Ralna, I hope this does not trigger a rush... imho stability in the marketplace is good...

Jan 17, 2011 06:18 AM