Happy Valentine’s Day!
Today is Monday and, as you know, we use Mondays to discuss mortgages and financing your home. You may have heard already that the CMHC is implementing new changes to their mortgage rates and amortization period effective March 18th.
In my opinion, these changes will effect only a small pool of people (mostly first-time buyers), but let’s do a rundown of changes to come:
Here’s the low-down:
Minister of Finance Jim Flaherty likely made these changes to further solidify the Canadian housing market. The changes are manageable and they’ll help you, the home owner, in the long-run.
Here are the 3 changes to be implemented:
- CMHC is going to remove 35 year amortization and reduce it down to 30 years.
- When you refinance the value of your home (key work: refinance), you can only go to 85% of the value of the home, opposed to 90% in the past.
- Removing the insurance on home-equity line of credits.
If you’d still like to sneak in before these changes are implemented, you’ve got about 1 month and 4 days to do so!
Do you need to talk mortgages or real estate?
Send me an email!