How Will the Upcoming Mortgage Changes Affect You?
(June 22, 2012
, posted in News)
With the new mortgage rules announced yesterday, you may be wondering how the changes will affect you. There were four main changes announced by the Government.
The first change, one that may affect the most homebuyers, is an amendment to amortization periods. As of July 9, 2012 the maximum amortization period will be reduced from the current 30 years to 25 years. The government hopes that by decreasing the current amortization length, Canadian families will save money in the long run and build more equity in their home even faster. Basically, the lower the amortization, the greater the application to principal versus interest.
The other changes:
Here is the Government’s announcement. In the upcoming weeks we will be posting a comprehensive article showing ways YOU can save interest with your mortgage. Check back soon!
The Goodfellow & Goodfellow Real Estate Team- Providing real estate services to Winnipeg and surrounding areas for over 30 years.
The first change, one that may affect the most homebuyers, is an amendment to amortization periods. As of July 9, 2012 the maximum amortization period will be reduced from the current 30 years to 25 years. The government hopes that by decreasing the current amortization length, Canadian families will save money in the long run and build more equity in their home even faster. Basically, the lower the amortization, the greater the application to principal versus interest.
The other changes:
- Canadians can now borrow a maximum of 80% against their home, reduced from the current 85%.
- Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent.
- Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.
Here is the Government’s announcement. In the upcoming weeks we will be posting a comprehensive article showing ways YOU can save interest with your mortgage. Check back soon!
The Goodfellow & Goodfellow Real Estate Team- Providing real estate services to Winnipeg and surrounding areas for over 30 years.
Categories
- All Entries (272)
- Ask The Goodfellows (1)
- Open Houses (11)
- In the Community... (6)
- Tips on Tuesday (4)
- News (2)
Archives
- May 2017 (1)
- April 2017 (3)
- March 2017 (1)
- January 2017 (1)
- December 2016 (2)
- September 2016 (4)
- August 2016 (5)
- July 2016 (4)
- June 2016 (6)
- May 2016 (7)
- April 2016 (6)
- March 2016 (10)
- February 2016 (8)
- January 2016 (8)
- December 2015 (2)
- November 2015 (3)
- October 2015 (7)
- September 2015 (7)
- August 2015 (6)
- July 2015 (5)
- June 2015 (9)
- May 2015 (5)
- April 2015 (7)
- March 2015 (9)
- February 2015 (8)
- January 2015 (5)
- December 2014 (4)
- November 2014 (5)
- October 2014 (5)
- September 2014 (5)
- August 2014 (5)
- July 2014 (5)
- June 2014 (4)
- May 2014 (4)
- April 2014 (8)
- March 2014 (5)
- February 2014 (4)
- January 2014 (4)
- December 2013 (3)
- November 2013 (4)
- October 2013 (5)
- September 2013 (4)
- August 2013 (4)
- July 2013 (6)
- June 2013 (3)
- May 2013 (3)
- April 2013 (4)
- March 2013 (3)
- February 2013 (1)
- January 2013 (2)
- December 2012 (2)
- November 2012 (3)
- October 2012 (3)
- September 2012 (2)
- August 2012 (5)
- July 2012 (5)
- June 2012 (7)
- May 2012 (4)
- April 2012 (2)