New Mortgage Rules
Will New Mortgage Rules Trigger Winter Buying?
"Buyers may buy during winter rather than wait until spring” says Globe and Mail
1. The federal government said that in 60 days, Canadians will no longer be able to obtain mortgages that have an amortization period of longer than 30 years. This will raise mortgage payments on a typical resale home by some $1,400 a year compared to the 35 year amortization rate available today.
2.To be clear, if you get your application in prior to March 18th, you won’t be affected.
3. Applications submitted after March 18th will have 30 year amortizations.
4. New rules don’t apply to clients putting down more than 20%
5. If you are refinancing after March 18th, your loan to value ratio will be 85% , not 90%. But most banks don’t offer insured refinancing!!
6. Government backed lines of credit stop March 18th - but most banks don’t offer these!!
7. Bank of Canada didn’t change overnight lending rate this week. Prime remains at 3%
So, does this change things for you? Do you have questions? Are you or anyone you know interested in buying or selling?
Please contact us, we are happy to help!
Stay tuned for more upcoming blogs on Richmond Real Estate, Vancouver Real Estate, sales, open houses and more.
Blogged by Ali Martinez, Keith Vines and Bill deMooy, of VinesdeMooy and Associates.