Mortgage changes !!
If you haven't already heard the news Canada's finance Minister has proposed some additional changes to Canada's mortgage rules. These changes are designed to keep home owners in their homes and to make sure they can really afford to own them. Here are the changes:
1) Maximum Amortizations are going to be reduced to 30 years. ( Currently 35 years, and prior to April 2010 was 40 years )
On a $250,000 Mortgage, a 30 year mortgage payment at 3.69% is $1,145. ( Currently at the maximum 35 years, payments would be $1,056..... $89 a month less )
( Offers need to be dated before March 18th, 2011, to be able to consider a 35 year mortgage )
2) Maximum Refinance will be capped at 85% of the value of the home ( Currently 90%, and prior to April 2010 was 95% )
On a $250,000 Home, today a client could borrow up to $225,000. ( Applicants after March 18th, can only apply to refinance up to $212,500 on a $250,000 home..... $12,500 less on a $250,000 home )
If you have any questions regarding mortgages or these changes please contact me so I can get you some answers to your questions.
Scott Cooper