January 17, 2011, Canadian Finance Minister Jim Flaherty announced three new mortgage rules to reduce the rising levels of debt are stanovništva.Pravila:
1) a new amortization period for the Canadian Mortgage and Housing Corporation-insured mortgage can not exceed 30 years.
2) 85% of the value of your home is all you can finance (or re-financing). This is down 5% from the old 90% limit.
3) It is no longer possible to buy government-backed insurance on credit lines secured by the house.
One day later, Mark Carney, Governor of the Bank of Canada, announced today that the reference interest rate will remain at its current level of 1 %.
These changes should take effect in spring 2011, are either good or bad news depending on your perspective. Larger down payments will mean some customers will now have to re-qualify. Waiting to purchase may be considered negative. Sellers, finding less shipping in circulation, can also see these changes as bad.
These changes should take effect in spring 2011, are either good or bad news depending on your perspective. Larger down payments will mean some customers will now have to re-qualify. Waiting to purchase may be considered negative. Sellers, finding less shipping in circulation, can also see these changes as bad.
...The good news is that borrowing costs remain at historic lows. Another benefit of this policy change is the increased equity owners in the market. A higher level of personal investment in home ownership can only support the ongoing real estate assessment. Increased capital position will also reduce the level of defaults which reduces the supply of "distressed" sales.
...best wishes for success,
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