The rumours we have been hearing about lately materialized this morning while most of us in BC still hadn't had our first cup of coffee! Good news, it is not as bad as we thought! The finance minister is attempting to protect Canadians from overextending themselves. Back in the day, amortization periods were 25 years and they have recently jumped to 40 years. Now we're pulling back a bit. This saves the consumer thousands of dollars in interest over the full term of the mortgage. But seriously, who stays in the same house for the entire term of a mortgage? However, the longer amortization just made it a bit easier for buyers to get into a home. Simply put, if you're borrowing to the max and sell in a falling market, it won't end well and you'll be angry at your real estate agent!
There are three points to the new rules included in the link below. The world has not come to an end, there is still tons of mortgage money available, and the rates are still at historic lows. For anyone just getting into the market, it could not be a better time because values are set to rise and you can reap the benefits in the coming years!
http://www.fin.gc.ca/n11/11-003-eng.asp
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