Mortgage Changes, What They Mean To You

I've been a bit behind in blogging and getting the message out about the changes to real estate mortagge rules but here it is.

The summary of changes:

  • Amortization reduction from 35 years to 30
    • Ottawa would no longer guarantee insured mortgages with terms exceeding 30 years, compared to the present 35-year limit. 
  • Home Equity Line of Credit capped at 85% and no longer insured by CMHC
    • The government reduced the maximum amount Canadians can borrow against the value of their homes, to 85% from 90%, on a refinancing; and removed federal government backing for home equity lines of credit, or so-called HELOCs

My friend and Century 21 colleague in PEI and broker/owner for Century 21 Colonial Realty Inc., Joel Ives, did an excellent video that explains these changes. Joel's video is below:

Through my new position as president of the Central Alberta REALTORS® Association I had the opportunity to speak with Harley Richards with the Red Deer Advocate.

They have me quoted as having a positive outlook and a net positive impact for home owners.  I still agree that will be the case for Central Alberta. 

“In the grand scheme of things, I think it makes for a healthier home ownership environment,” said Patrick Galesloot, broker-owner of Century 21 Advantage in Red Deer. “His efforts are trying to get people mortgage-free faster.”

We have seen a growing number of foreclosures listed during 2010.  while that may be good for our business it's not a good thing for those home owners.  Owning a home is a great thing and we like to see you enjoy your home for a many years.

 

Your Friend in Real Estate,

Patrick Galesloot

I tweet, yes I am one of those guys.  You can follow me if you want but it's not always real estate related.

www.twitter.com/pgalesloot

 

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