If you’re considering buying a new home or refinancing/renewing your current mortgage, it would be a wise move to act before July 9th 2012!
The Federal Government announced this morning four new clampdowns on insured mortgages that will quickly come into effect on Monday, July 9th, 2012.
These changes include:
- Reducing the maximum amortization period to 25 years from 30 years
- Reducing the maximum amount of equity homeowners can take out of their homes when refinancing to 80% from the current 85%
- Limiting the availability of government-backed mortgages to homes with a purchase price of less than $1 million
- Fixing the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44%
The first two changes will have the biggest impact on Canadian borrowers.
If you’d like to review your options or if you have any questions, please give me a call or send me an email, and I’ll be happy to discuss how these changes may affect your mortgage situation. It’s my job to ensure you have the best options and strategies available at all times!!
Martin D. Krell
Serving Families Across BC!
P.S. Rates are LOW right now. 5 year fixed is at 3.09%ish and 10 year is at 3.99%. This is a great time to switch and lock in!
P.S.S. 5 year fixed mortgages can come approved with a $5,000 Visa – Call me for details!