27 Jun

4 New Mortgage Rules

General

Posted by: Jennifer Fuentes

4 new mortgage rules announced this morning by Canada’s Finance Minister.
1) amortization length will shorten to 25 years from 30 years
2)refinancing – home owners will only be able to refinance to a maximum of 80%, previously 85%
3)debt servicing tightens – Gross debt servicing will be fixed at a maximum of 39% and total debt servicing’s maximum at 44%
4)insured loans will only be for purchase prices below $1 million dollars.

The amortization cut-back is a big one and will affect how much you qualify for!

If you were thinking about buying or refinancing, contact me ASAP to see if these rules apply to you. www.jenniferestrada.ca

http://business.financialpost.com/2012/06/21/mortgage-rules-federal-statement/

6 Jun

Bank of Canada Interest Rate Decision: What you need to know

General

Posted by: Jennifer Fuentes

Bank of Canada announced they will be keeping their Key Interest Rate at 1%, which means the lending prime will remain at 3%. As global economic growth has weakened, and the European crisis sharpens, the Bank of Canada waits for the weather to clear and is holding rates. See this article for more info on today’s decision announcement.

http://business.financialpost.com/2012/06/05/bank-of-canada-interest-rate-decision-what-you-need-to-know/