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