Buy your next home before the new mortgage rules make it more difficult for you to buy!!

Today (June 21, 2012), the federal government announced amendments to government-backed mortgage standards in Canada that will take effect on July 9, 2012. These changes will make it more difficult to qualify for a mortgage, and will reduce the mortgage amount that you will be able to get. Buy now before the changes come into affect.

Jim Flaherty, Minister of Finance, announced the following changes to the standards governing government-backed insured mortgages:

the maximum amortization period was reduced from 30 years to 25 years;  the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from 85 per cent of the value of their homes; the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio at 44 per cent; and the availability of government-backed insured mortgages was limited to homes with a purchase price of less
than $1 million.

Better buy now before the mortgage rule changes making it more difficult to buy a home, and making it less affordable.

http://business.financialpost.com/2012/06/21/ottawa-tightens-mortgage-rules-what-the-analysts-say/

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This entry was posted on Thursday, June 21st, 2012 at 11:01 am and is filed under Economic News, Edmonton Real Estate Forecast, Mortgage Rates, Real estate news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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