Posts Tagged ‘Home Refinancing’

CMHC Mortgage Changes on March 18, 2011

Thursday, March 10th, 2011

CMHC Mortgage ChangesSome big news this morning regarding some upcoming changes to both mortgage amortizations and refinance loan to values.  Please note that these changes come into effect on  March 18, 2011.

Maximum Amortization – 35 to 30 Years

For the average purchaser  this will not make much of a difference.  As with last year, when the maximum amortization moved from 40 years to 35 years it did not have the negative impact the lenders feared, as the mortgage brokers and lenders worked hard to get even 1st time home buyers to fit into their debt service guidelines.  We’ll need to do more of the same this time around.  With interest rates at all time lows this shouldn’t be an issue.  **Note.  Home buyers can continue to purchase with a minimum of 5% downpayment! And some special cases we can still get you into home ownership with zero down **

Loan to Value Changes on Refinances ONLY

Of the two changes coming into effect, the change to loan to value limits on refinances will have the biggest impact.  Effective  March 18th, 2011 clients will only be able to withdraw up to 85% of their home’s current value (as opposed to 90%).  This represents at drop of 10% in the amount of equity that we can refinance from two years ago.

So if you are looking to refinance or restructure your debt, now is possibly your last chance to get it done before the new rules come into effect! Did you know we have an on site Mortgage Broker at our St. Catharines Remax Office. Why not take advantage of our one stop shopping here at Remax Garden City Realty Inc.

If you are looking to buy or sell a home in St. Catharines don’t hesitate to contact the Atalick Team, St. Catharines Real Estate Agents.

Bookmark and Share