New mortgage rules have Canadians scrambling to get in under the wire.
The surprise announcement that mortgage rules will change again on July 9 has many homebuyers scrambling to get in under the wire with the old rules.
These latest new rules – amortization limit of 25 years and refinance limits of 80 per cent – are designed to lower debt levels, enforce some belt-tightening, and promote savings through home ownership. You should get in touch with us now if:
- you are planning to buy or have a mortgage pre-approval with an amortization of 30 years. You must have an agreement of purchase and sale before July 9 in order to keep that amortization, and any new applications before July 9 must fund by December 31, 2012; or,
- you need to refinance to consolidate your high interest debt to lower your interest costs and boost your monthly cash flow.
If you are an existing homeowner, the new parameters will only apply if you need to increase the amount of your insured mortgage. We can help clarify your situation.
We are always aware of the current environment and the resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals!
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