Important Industry Update: Canada Mortgage Insurance rules | #Toronto #Canada #Mortgage #realestate

https://i0.wp.com/image.exct.net/lib/fe69157075640c7a7411/m/1/header_news.jpg

 

Yesterday morning, the Federal Finance Minister announced further changes to Canada’s mortgage insurance rules.  Four measures were announced:

1. Amortizations reduced to 25 years
2. Refinancing limited to 80%
3. Properties purchased at over $1 million no longer eligible for mortgage insurance
4. GDS and TDS set at 39% and 44%
      
CAAMP believes that Canadians understand the importance of paying down their mortgages.  These changes, together with new OSFI underwriting guidelines – also to be announced today – may precipitate the housing market downturn the government so desperately wants to avoid.  The changes take effect July 9, 2012.

CAAMP was pleased that it was again successful in ensuring the 5% down payment rule remains intact; however, the government may have overreached with this latest round of changes.

To review yesterday’s Globe and Mail article click here
To review the government press release and backgrounders click here
To contact Minister Flaherty or your local MP click here

 

 

Advertisements

About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: