New Canadian Mortgage Rules Come Into Effect July 9 2012
Federal Finance Minister Jim Flaherty recently announced major changes to Canada mortgage lending rules.
This move continues the theme of the 2011 mortgage rule changes were the Federal Government does a focused cooling of the housing market without resorting to raising interest rates which would have a negative impact on the overall economy.
What are the Changes in Canada’s Mortgage Rules?
The four major changes effective July 9, 2012 are as follows: Continue Reading…
From April 18, 2011 The Government of Canada Will No Longer Guarantee Home Equity Lines of Credit (HELOC)
In January 2011, Canada’s Department of Finance announced a series of changes to mortgage and property financing rules. These new mortgage rule changes are intended to cool Canada’s real estate market and slow Canadians per capita debt growth in the short term and support the long term stability of the Canadian property market.
Jessi Johnson a Mortgage Broker in Vancouver was kind enough to come and explain the changes.
In part 1 of 3 we talked about how the Department of Finance rule changes are shortening the amortization for high ratio mortgages. In part 2 of 3, we discussed how under the new mortgage rules it will only be possible to pull out 80% loan to value when refinancing a property in Canada from March 18, 2011.
Today we are talking how the Government of Canada will no longer insure or guarantee Home Equity Lines of Credit offered by Canadian Banks and lending institutions from April 18, 2011.
What is a Home Equity Line of Credit? Continue Reading…
The New 2011 Department of Finance Mortgage Rule Changes and Real Estate in Vancouver
Canada’s Department of Finance, which oversees and regulates Canada’s mortgage market which has a huge impact on Real Estate in Vancouver has enacted a new series of measures to cool the property market across Canada. The changes announced on January 17, 2011 are designed to allow the government to cool the Real Estate Market without affecting the overall economy by raising the Bank of Canada’s Prime Rate.
Call in the Expert!
As I am Realtor and not a Mortgage Broker, so I called in the expert to answer my questions on the new rules. Jessi Johnson, a Vancouver Mortgage Broker was kind enough to meet with me and explain the changes in detail.
Since there was sooo much detail, we broke up the discussion on the New 2011 Department of Finance Mortgage Rules and its effects on Vancouver Real Estate into a three part series. In part one of the series we are going to talk about the changes to maximum amortization.
Shortened Amortization for High Ratio Mortgages? Continue Reading…