Government Announces 3 New Rules

There are 3 new rules coming into effect this spring that are aimed to further stabilize Canada's housing market. Also, the measures are designed to support hard-working Canadian families build up their savings through home ownership.

The 3 rules:

1. The maximum amortization period will be reduced from 35 to 30 years for new government-backed mortgages with load-to-value ratios of more than 80%. The reduced term will significantly reduce the interest payments Canadian families will have to make, and allow them to build up equity in their homes faster.

2. The maximum amount Canadians can borrow in refinancing their mortgages will decrease from 90% to 85% of the value of their homes. This will limit the repackaging of consumer debt into mortgages guaranteed by taxpayers, and promote saving through home ownership.

3. Government insurance backing on lines of credit secured by homes will be withdrawn. This will mean financial institutions will manage the risk associated with these loans, which protects taxpayers from having to insure these debt products used to borrow funds unrelated to house purchases.

Minister of Finance Jim Flaherty announced the first two rules come into effect March 18, with the third on April 18, 2011.  

Source: http://www.fin.gc.ca/n11/11-003-eng.asp

Thanks very much for reading. As always, if you would like to discuss your current real estate situation, I would love to offer my expert knowledge of the Oakville and Burlington markets. You can reach me at 905 845 9180, or by email at jamie.vieira@century21.ca. 

  Sincerely,

Oakville Burlington Real Estate Agent

Jamie Vieira
Century 21 Miller
905 845 9180
jamie.vieira@century21.ca
www.jamiesells.ca

Oakville Burlington Real Estate Agent Oakville Burlington Real Estate Agent Oakville Burlington Real Estate Agent

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Jamie Vieira

Jamie Vieira

Sales Representative
CENTURY 21 Miller Real Estate Ltd., Brokerage*
Contact Me

Blog Archives

Tags