How the new rules may affect you buying Real Estate in British Columbia.
The Federal Governmment announced this morning four new changes on insured mortgages that will come into effect in less than 3 weeks! (July 9, 2012)
If you are considering a mortgage check up, now might be the time before the changes come into effect. The main changes are:
- The maximum amortization will be reduced from 30 years to 25 years
- Currently you may refinance up to 85% of the value of your home, that will be reducing to 80%
- There will be a limit on the availability of government backed mortgages to homes with purchase price of less that $1,000,000
- Currently the Gross Debt Service ratio is 32% and that will be increased to 39% and the Total Debt Service Ratio will be increased to 44%.
Are you wondering how this will have an impact on you? Or will it have an impact on you?
Maybe now is the best time for your mortgage check-up. Please feel free to call or email me at anytime so that we can discuss how these changes may affect you.
I have included the link below to the recent article in the globe and mail!
I look forward to hearing from you, and remember, the changes come into effect on July 9, 2012!!