We all try to keep on top of things when it comes to our finances, but sometimes sudden changes can throw us for a loop.
Changes to rules for insured mortgages that were announced late last week fall into that category. They could have a big impact on your mortgage payments and the total amount you can borrow.
If you’re considering buying a new home or refinancing/renewing your current mortgage, it would be a wise move to act before Monday, July 9!
The federal government announced last week four new clampdowns on insured mortgages that will quickly come into effect on July 9, 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.
As a mortgage broker, I can help you to quickly assess the situation and offer advice on finding mortgage solutions before the changes take effect.
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!!