Rose Perdue

As of March 18th the first 2 changes have come into effect.

1.

Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80%. This will significantly reduce the total interest payments Canadian families make on their mortgages, allowing for Canadian families to build equity in their homes more quickly, and help Canadians pay off their mortgages before they retire. On a $200,000 mtge using a 5 yr fixed rate of 3.79%, the pmt will go from $857.00 per mnth to $927.00.
This will come into effect on March 18th, 2011.

2.

Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
This will come into effect on March 18th, 2011.

3.

Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.
This will come into effect on April 18th, 2011.

With these new changes coming, it may be time to get a financial check-up and review your current mortgage prior to these new rules coming into force.

We can look at possibly lowering your interest by consolidating debts and reduce your monthly carrying costs so any additional money can go towards retiring your mortgage sooner.

Courtesy of Lyle Somers of Assured Mortgages