Thinking of buying a home? Your purchasing power may soon shrink due to the new mortgage rules coming into effect. As announced today, the following changes will apply to new mortgages approved after July 9, 2012:
1.Maximum amortization for CMHC insured mortgages will be reduced from 30 to 25 years.
2.Maximum purchase price for CMHC insured mortgages will be $1 million.
3.Maximum refinancing for CMHC insured mortgages will be reduced to 80% from the current 85% of loan to value
How will this affect current home buyers? If you have less than 20% down payment, your mortgage will have to be insured and the above new rules will apply. Shorter amortization time means higher monthly payments, however it also means that you will be mortgage free sooner.
30 year amortization will still be available on any purchases approved by CMHC before July 9th.
Contact our Home Savvy team of real estate and mortgage agents with any questions or concerns on how will these changes affect you.
Author:Julita Jaworski Phone: 289-200-1095 Dated: June 21st 2012 Views: 2,014 About Julita: Julita Jaworski, Sales Representative, Keller Williams Energy Real Estate Brokerage -
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