Mortgage changes coming... April 19, 2010

As we have been hearing, there are changes that are happening.

Here is a short summary of 3 changes, and the links to follow for more information.

1. Qualifying for a Five-Year rate - Some mortgages were being qualified on the lower 3 year rates, now new borrowers need to qualify for the 5 year fixed rate mortgage, when calculating the gross debt and total debt service ratios.

2. Limit the maximum refinancing - Currently borrowers can refinance their mortgages upto 95%, but come April 19, 2010, that amount is being reduced to 90%.

3. Discouraging speculations - Some properties (non-owner occupied - rentals) will now require a 20% down payment instead of the 5%.

Of course there is are exceptions to the rules and they may change a few more times before they are fullly enforceable.

However, I do encourge you to act soon and talk to a mortgage broker if you are considering purchasing real estate in the near future.

If you would like a contact to a mortgage broker, please feel free to contact me, or your realtor.

For more information on the above changes, feel free to check out:

http://www.fin.gc.ca/n10/10-011-eng.asp
http://www.financialpost.com/most-popular/story.html?id=2570533
http://www.nationalpost.com/news/story.html?id=2590149