THIS JUST IN!
Finance Minister Jim Flaherty has just announced sweeping changes to Canada Mortgage and Housing Corporation (CMHC)Canada’s national housing agency. CMHC is Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.
The 3 major changes are as follows;
Here are the 3 main changes to the new mortgage rules:
1) A reduction in MAX amortization for CMHC insured mortgages from 30 yrs back down to 25 yrs. This is will result in Canadian home buyers paying less in mortgage interest payments over the course paying off your home. The downfall is that fewer people will qualify for a mortgage as the payments will be higher, and more income will be required to qualify for a mortgage.
2) Homes priced over $1 million are no longer eligible for CMHC insurance.
3) MAX refinance has been reduced from 85% (Loan To Value) LTV to 80% LTV.
It is very important if you have been pre-approved to talk to your lender asap to see if these changes impact you. Also see your Century 21 Professional to see how we can help you!