Wednesday, February 17, 2010
NEW MORTGAGE RULES
by Naomi Morrison on Wed, Feb, 17, 2010 12:25 PM
Today the Finance Minister announced the new mortgage rules that will take affect in Canada on April 19 of this year. Below is a summary of the 3 major rule changes and how it could affect you....
1. Borrowers will need to qualify using a 5-year fixed rate regardless of what term they choose. If you want a 1.90% variable rate, for example, you will need to show that you can afford payments at a higher fixed rate, like 4.09%.
REASON: This will help Canadians prepare for higher interest rates in the future and ensure they can still afford the payment in the event their rates rise at renewal or if in a variable rate mortgage.
2. 90% Maximum Refinancing - No longer will you be able to refinance your home to 95% of it's value. 90% will be the new maximum.
REASON: To ensure borrowers are not using all their home equity in order to consolidate high interest debts with lower mortgage rates. This will also help home owners from going into a negative equity position if the market begins to drop.
3. Minimum 20% Down Payment required for investment properties. People buying non-owner occupied rental properties will need to put down 20% to get an insured mortgage, versus 5% currently.
REASON: This measure is likely aimed at tempering speculative buying of real estate by reducing the leverage available to buyers.
For more information click here.
**information provided by Trish Pigott of Meridian Coastal Mortgages Friday, February 12, 2010
WHY USE A MORTGAGE BROKER?
by Naomi Morrison on Fri, Feb, 12, 2010 01:44 PM
A mortgage broker is a certified professional who seeks the best mortgage terms for you by accessing a network of lenders that includes major banks, trust companies, credit unions and finance companies. (Brokers may also draw on local lenders that aren't part of a network.) This stable of lenders provides brokers with interest rates on a near-daily basis keeping us on top of the market trends and changes. More information here.
Trish Pigott of Meridian Coastal Mortgages is, in my opinion, one of the best Mortgage Broker in the Lower Mainland! To view more information on Trish and her company, visit her website www.trishpigott.com.
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