Category Archives: Mortgages

Home listings in Regina hit 10-year high for May | CTV Regina News#.U6Bk8lqSGjQ.facebook#.U6Bk8lqSGjQ.facebook

Home listings in Regina hit 10-year high for May | CTV Regina News#.U6Bk8lqSGjQ.facebook#.U6Bk8lqSGjQ.facebook.

The economic impact of real estate transactions in Canada

The economic impact of real estate transactions in Canada.

Mortgage rules change today but most Canadians are unaware!


TORONTO — New mortgage rules go into effect today in Canada but a recent  survey suggests many people are unfamiliar with the changes.

Starting Monday July 9th, 2012, lenders can only issue home equity loans up to a maximum of  80% of a property’s value — down from 85%.

The maximum amortization period also drops to 25 years from 30 years — giving  borrowers less time to repay the debt in full.

In addition, the federal government is capping the maximum debt ratios for  households and limiting government insurance to mortgages on homes with a  purchase price of less than $1-million.

A poll conducted by Pollara for Bank of Montreal found only about half of  those surveyed were familiar with the changes brought in by the federal  government.

And only 45% of those surveyed June 29 to July 4 were aware that the maximum  amortization period has been shortened by five years.

Read the full Leader Post article here!

Mortgage Rule Changes

In a media conference in Ottawa on February 16th, 2010, Canada’s Minister of Finance Jim Flaherty announced that there will be changes to the standards governing government-backed mortgages. The following is a summary of these changes that are to come into effect on April 19th, 2010!

QUALIFYING FOR A FIVE-YEAR RATE

The adjustments to the mortgage framework will require mortgage insurers to ensure that new borrowers qualify for a five-year fixed rate mortgage when calculating the gross debt service and total debt service ratios. The measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.

LIMIT THE MAXIMUM REFINANCING

Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95% of the value of the property. The adjustment will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high-ratio mortgage loan to 90% of the value of the property, consistent with the principle that home ownership is a tool for savings.

DISCOURAGING SPECULATION

This measure will require a minimum down payment of 20% for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. At present, borrowers may purchase a residential property with a 5% down payment. The change will require a 20% down payment for small non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (such as a duplex) will still be able to access government-backed mortgage insurance with a 5% down payment.

To read more on this topic, go to the Leader Post article at: http://bit.ly/aLWfeV