Posts Tagged ‘Mortgages’
Monday, January 17th, 2011
- Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with a loan to value ratio of more than 80 per cent. This will significatnly reduce the total interest payments Canadian families make on their mortgages, allowing Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
- Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
- Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not by borne by taxpayers.
These changes above will take effect March 18, 2011 with the exception of insured HELOC (bullet 3) will take effect April 18, 2011.
Tags:Calgary real estate, canada, Mortgages, new mortgage rules
Posted in Business, Buyers, Calgary, City, home buyers, House, Real estate | Comments Closed
Wednesday, March 31st, 2010
More on the new CMHC Mortgage Rules for Real Estate
March 9, 2010 by Tessa Corley-Rae
I just spoke with my friend and mortgage broker Terry Caldie from the Mortgage Centre in Calgary about CMHC’s new mortgage regulations for homeowners and property investors. These new rules are nothing to panic about, in fact, up until 2 years ago these rules were exactly how CMHC ran any way. What people have to realize is that Convensional Mortgages (where people place 20% or more down as a down payment) are still exactly the same as they were before. However, the good news is buyers can still avoid CMHC with only 20% down, rather than the previous 25% that was required only months ago for a convensional mortgage. 2 years ago the government decided to create a “stimulous package” for buying property, this was inlight of the down turn in the economy that we have just pushed through. This “stimulous package” included relaxed rules for buying revenue properties, as well as large refinancing options.
Please see below for my interpretation of the new rules:
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Tags:Alberta, Calgary, canada, CMHC, Corley, Corley-Rae, First-Time Buyers, Loan, mortgage, Mortgages, Tessa
Posted in Alberta, Calgary, Cochrane, Condo, Daily Stats, Estate, Home, Homes, House, Inner City, Land, Lots, Monthly Stats, Real estate, Real Estate Media, Town, Uncategorized | Comments Closed