Finance Minister Jim
Flaherty has just announced sweeping changes to Canada Mortgage and Housing Corporation
(CMHC)Canada’s national housing agency. CMHC is Canada’s premier provider of
mortgage loan insurance, mortgage-backed securities, housing policy and
programs, and housing research.
The 3 major changes are as follows;
1) A reduction in MAX amortization for CMHC insured mortgages from 30 yrs back
down to 25 yrs. This is will result in Canadian home buyers paying less
in mortgage interest payments over the course paying off your home. The
downfall is that fewer people will qualify for a mortgage as the payments will
be higher, and more income will be required to qualify for a mortgage.
2) Homes priced over $1 million are no longer eligible for CMHC insurance.
3) MAX refinance has been reduced from 85% (Loan To Value) LTV to 80% LTV.
To find out how these changes might affect you, contact me today!
Find relevant information on real estate, from household tips to market conditions and statistics. Contact me for a FREE Home Value Report!
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