New federal measures will make it more difficult for homebuyer’s to get government backed mortgages. The measures are set to take place on April 19, 2010.
Homebuyer’s will now have to settle for a less expensive home or have a higher mortgage, The Toronto Star reported on Tuesday February 16, 2010.
The new rules will:
> Require all homebuyers to meet the higher borrowing qualification for a five-year fixed rate mortgage, even if seeking a mortgage with a lower interest rate and shorter term. Therefore thousands of buyers will have to provide a higher down payment or buy a less costly home.
> Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 percent of the value of their homes from 95 percent. Finance minister Jim Flaherty says this will discourage people from using their homes as “ATM machines”.
> Require a minimum down payment of 20 percent for government-backed mortgage insurance on non-owner-occupied properties “purchased for speculation”. This measure is meant to hold down speculative investments in non-owner-occupied residential properties involving one to four living units.
Flaherty says the government wants to slow down the fast-rising house prices and prevent homebuyers from getting into mortgages that they cannot afford once low interest rates move up from their current levels once the recession ends.
Home Buying to Get Tougher
Back to Reality!
Well, the holiday season is over, and it's back to reality for all of us. I hope you and your family enjoyed every minutes of the Holidays and had a very happy new year.
Ray and I are truly looking forward to 2010. We've got some new adventures planned for our online marketing, and our real estate careers. Stay tuned for Vlogs (Video Blogs) coming soon and more!
If you are thinking of buying or selling in 2010, or know someone who is, please do not hesitate to contact me at any time. Or if you'd just like an update on the local Real Estate Market I would be glad to give you some insight and answer any questions you may have. It's always great to hear from you!
You can email me at Amie@RealtorAmie.com or visit my website at http://www.RealtorAmie.com or call me at (519) 583-2680.
If you're a twitter'er you can follow me at http://twitter.com/RealtorAmie or you can follow me on facebook by clicking here.
Happy New Year and thank you for visiting my blog. Check back often for up-to-date real estate information!
Ray and I are truly looking forward to 2010. We've got some new adventures planned for our online marketing, and our real estate careers. Stay tuned for Vlogs (Video Blogs) coming soon and more!
If you are thinking of buying or selling in 2010, or know someone who is, please do not hesitate to contact me at any time. Or if you'd just like an update on the local Real Estate Market I would be glad to give you some insight and answer any questions you may have. It's always great to hear from you!
You can email me at Amie@RealtorAmie.com or visit my website at http://www.RealtorAmie.com or call me at (519) 583-2680.
If you're a twitter'er you can follow me at http://twitter.com/RealtorAmie or you can follow me on facebook by clicking here.
Happy New Year and thank you for visiting my blog. Check back often for up-to-date real estate information!
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