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NEW CANADIAN MORTGAGE RULES....A BAD THING?

By
Real Estate Agent with RE/MAX Centre City

As most of you probably came across this morning in the globe and mail or some other new source, there will be a few changes to Canadian mortgage rules.  I find people generally tend to react negatively to change in these types of systems, however I personally feel this could be a positive change.

First off, in case werent aware of the changes that will commence in 60 days from now, here they are:

-The minimum amortization periods will now be 30 years as opposed to 35 years

-The maximum amount you can borrow in refinancing your home will be 85% from 90%

-Ottawa will withdraw government insurance backing on line of credits secured by homes

How do you think buyers will react to these changes? Will we have a sudden rush of buyers in the next 60 days?  Will homeowners take advantage of the extra 5% they are able to refinance in the next little while.

What do you think?

Comments (3)

Andres Munar
Keystone Alliance Mortgage - State College, PA
Experience The Difference

First off congrats on your first blog. And predict you should see a rush of buyers if the loan officers let their clients know that going from 35 to a 30 yr term will lower their buying power. Mortgage companies should also see a rush of refinances for cash out refinances since its going from 90 to 85%. But again this will all be depend on if the loan officers SELL this to their clients after all we are in sales right :)

Jan 17, 2011 02:36 PM
Richard Ruggaber
Metro Life Homes - Los Angeles, CA
California Real Estate - (818) 422-5035

Melissa:  I am a fellow Canadian living in Los Angeles and love to read up on updates in Canada.  Thank You so much for this educational blog.  It will be interesting to see if the buying power increases during these next 60 days.  I look forward to seeing more great blogs from you.  All the best, Cheers!

Jan 17, 2011 03:54 PM
Gholvc Opfcbn
e Corp. - White Rock, BC
White Rock BC Mortgage Broker

Thank you for sharing these new mortgage rules. All the more reasons for buyers to use the services of a mortgage broker in order to get the lowest interest rate so that they qualify for a loan large enough to purchase the home of their dreams.

Jul 10, 2012 10:40 AM