The new measures:
Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow 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 per cent from 90 per cent 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 borne by taxpayers.
Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.
The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.
Winston
Monday, January 17, 2011
Thursday, November 25, 2010
FREE HOME BUYER SEMINAR
This is an excellent time to purchase your first home. The slow real estate market we are currently experiencing means first-time homebuyers have a large inventory from which to select. An even bigger advantage for buyers is the lower pricing!
Before you select a REALTOR® a Mortgage Broker, a Home inspector or a Lawyer to assist you in the purchase of your first home, be sure you are working with someone you can trust with this important decision.
Please Join us for a FREE first time buyer seminar where you will learn about Financing, Home inspections, Legal tips and tricks, negotiating to yes, Power of sale properties, strategies to increase your price when selling your home.
We enjoy working with first-time homebuyers, and would consider working with you to be an honour and a privilege. You have my word that we will always be available to answers any questions and address any concerns that may develop.
Seminar date is 01 Dec 2010 at 10 Milner Business court suite 900.
There will be a REALTOR® a Mortgage Broker, a Home Inspector and a Lawyer present to answer your questions.
You can reach me by phone at 416-723-6526 or by email at Winston@winstonhemmings.com
The experience that puts people with places
Before you select a REALTOR® a Mortgage Broker, a Home inspector or a Lawyer to assist you in the purchase of your first home, be sure you are working with someone you can trust with this important decision.
Please Join us for a FREE first time buyer seminar where you will learn about Financing, Home inspections, Legal tips and tricks, negotiating to yes, Power of sale properties, strategies to increase your price when selling your home.
We enjoy working with first-time homebuyers, and would consider working with you to be an honour and a privilege. You have my word that we will always be available to answers any questions and address any concerns that may develop.
Seminar date is 01 Dec 2010 at 10 Milner Business court suite 900.
There will be a REALTOR® a Mortgage Broker, a Home Inspector and a Lawyer present to answer your questions.
You can reach me by phone at 416-723-6526 or by email at Winston@winstonhemmings.com
The experience that puts people with places
Sunday, October 3, 2010
Monday, December 21, 2009
New home buyers may face down-payment hike
TORONTO
CTV says Ottawa is considering raising the minimum down payment for home buyers as well as reducing the amortization period in order to stop some consumers from taking on too much debt.
In an interview with CTV Question Period, to be aired next week, Finance Minister Jim Flaherty says the measures will be taken if there's evidence of excessive demand in the housing market.
Flaherty says that the new measures would target consumers "who are taking on obligations that they will not be able to handle in the future when the interest rates do rise."
He says the likely measures the government will take is to increase the size of the down payment from five per cent "to a higher figure" and to reduce the amortization period "from a maximum of 35 years to something less."
Those measures would increase the monthly payments, making it more difficult for some people to take on a mortgage and purchase a home, without having to increase the interest rate.
Last week, the central bank warned that when interest rates rise to normal levels, up to 10 per cent of households could face difficulties in meeting monthly payment requirements.
CTV says Ottawa is considering raising the minimum down payment for home buyers as well as reducing the amortization period in order to stop some consumers from taking on too much debt.
In an interview with CTV Question Period, to be aired next week, Finance Minister Jim Flaherty says the measures will be taken if there's evidence of excessive demand in the housing market.
Flaherty says that the new measures would target consumers "who are taking on obligations that they will not be able to handle in the future when the interest rates do rise."
He says the likely measures the government will take is to increase the size of the down payment from five per cent "to a higher figure" and to reduce the amortization period "from a maximum of 35 years to something less."
Those measures would increase the monthly payments, making it more difficult for some people to take on a mortgage and purchase a home, without having to increase the interest rate.
Last week, the central bank warned that when interest rates rise to normal levels, up to 10 per cent of households could face difficulties in meeting monthly payment requirements.
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