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Financing, Mortgages and Insurance What options are best for you and your situation?


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Old 2012-06-22, 11:21 PM
mimi30 mimi30 is offline
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Default Ottawa changes amortization from 30 to 25 years

what do you think and how will it affect us
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Old 2012-06-23, 12:26 AM
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GregS GregS is offline
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Some details here:

http://www.theglobeandmail.com/repor...rticle4362005/

What it will do is probably weed out those who may not be able to afford the interest rates in 5 years after their first term is up.

In 5 years rates 'should' be higher.
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Old 2012-06-24, 05:51 PM
Tara Wilkins Tara Wilkins is offline
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I have received A LOT of calls regarding Jim Flaherty's announcement related to high ratio insured mortgage lending rules that will take effect July 9th, 2012. I thought it would be good to send out a clarification on the rules. The main point is the 25 Years Amortization is currently on all high ratio, government insured mortgages. If you have 20% down payment on your home, then you are still approved for a 30 Year Mortgage.



Key changes include:

*Reducing the maximum amortization period for high ratio insured mortgages to 25 years from 30 years
*Lowering the maximum amount Canadians can borrow when refinancing using insured mortgages to 80% from 85% of the value of their homes
*Reducing total debt service (TDS) ratio for high ratio insured mortgages to 44% (previously 45%)
*Limiting the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million

I agree with Greg that this will weed out those who are going over their budget to purchase a home. If you have a builder house that you have NOT received an approval for, I would highly recommend you call your Mortgage Specialist/Broker to set up a meeting.

Tara Wilkins
Mortgage Specialist
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Old 2012-06-27, 09:23 AM
Aisha Aisha is offline
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http://blog.buzzbuzzhome.com/2012/06...-25-years.html


Found this article this morning. Good news is that they will try to keep mortgage rates down for a while but bottom line they are telling you not to bank on it being this low forever.
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