Morning and Happy New Year.... a little present from Ottawa this morning. Rumors of a change to amortization came true this morning as the finance department has decided to reduce the amount of amortization that Canadians can have for an insured mortgage. This once again will impact affordability for first time home buyers. If you have customers with rate holds waiting to buy their homes then the amount they are pre qualified for will definitely be reduced. They have set the dates for this to be in effect to be March 18 2011 and the change to taking equity to be April 18 2011.
Add to this the expected rise in interest rates!
Flaherty unveiled three main changes:
- The maximum number of years the government will back a mortgage was lowered to 30.
- The upper limit that Canadians can borrow against their home equity was lowered to 85 per cent from 90 per cent.
- Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
Call Amy Wilson now to get your refinance done before these rules take effect