No New Mortgage Rule Changes
“Canadian Home Owners Should Not See Any Further Mortgage Rule Changes
Any Time Soon”
According to finance minister Jim Flaherty, there are no further mortgage rule changes being proposed and that the three sets of changes made over the last couple of years have the market going in the right direction.
For more specifics on what the minister had to say, here is a link to a financial post article on the subject… http://business.financialpost.com/2011/05/10/no-new-mortgage-rule-changes-flaherty/
What this means for home owners is that its time to settle into the new way of things with respect to managing their mortgage debt now and in the future.
The recent rule changes have made it more difficult to qualify for a mortgage, requiring that individuals with lower equity down payments be able to cover off a rise in interest rates with their available income level.
Reductions in the maximum amortization period, amount of debt that can be refinanced as a percentage of property value, maximum lending for rental properties, and the removal of mortgage insurance on home equity lines of credit have had a significant impact on the residential mortgage landscape.
But like with any change, there is going to be an adjustment period during which time home owners and prospective home owners are going to have to learn how to meet the new requirements in order to achieve their financial goals in both the short and long term.
The whole point of making the changes was to avoid the housing market becoming too overheated by cheaper debt that is not likely to stay at the current levels for too much longer, or at least that is what all the signs and pundits seem to be pointing to.
And to this point in time at least, housing prices have held or increased in most Canadian locales while the residential housing market to the south continues to be in near total disarray.
So regardless of whether you’re a new home owner, a first time home buyer, or a long time mortgage holder, its likely time to brush up on the new world of mortgage financing so that you can be in the best position to make good decisions on a timely basis going forward.
Because most mortgage holders have not had any type of mortgage event or mortgage decision required of them in the last couple of years, it does make sense to acclimate yourself to the mortgage regulations as they exist today as they appear to here to stay for the near future.
If you would like to better understand any of the recent changes and how they may impact your current mortgage or future financial planning, I suggest that you give me a call and set up a time where we have a discussion and get all your questions answered.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel