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Welcome,
Do you need information on mortgages? Mortgages have changed so much over the past few years. Even within the past few months new products have been introduced.
As housing prices have gone up in the province of Ablerta, lenders have been searching for ways to make home buying affordable.
In March CMHC introduced 30 year insured mortgages. A few days later, their competition, Genworth Financial introduced 30 and 35 year mortgages. On a typical $200,000 mortgage the monthly savings would come out to about $250. This made affordable housing a possiblility for many.
In May, GE Money introduced a 40 year amortized mortgage. Wow !!
If you want more up to date information visit my website at:
http://mortgagealliance.ca/davidcooke
posted by Dave Cooke @ 9:39 PM
4 comments
4 Comments:
May 3rd
I fixed some broken and outdated links on my LINKS page.
I added BAnkruptcy Canada.
They are Canada's largest and most inmformative website for people going through or thinking about proceeding with bankruptcy in the country.
Ottawa tightens mortgage insurance rules
Last Updated: Wednesday, July 9, 2008 | 6:09 PM ET Difficulty rendering data:SyntaxError: invalid quantifier {
CBC News
Canada's housing market is strong and secure, the government says, but will still be subject to tighter mortgage insurance rules.Canada's housing market is strong and secure, the government says, but will still be subject to tighter mortgage insurance rules. (Ted S. Warren/Associated Press)
The federal government said Wednesday that it is tightening the rules relating to government-guaranteed mortgages, even though there is no evidence that the Canadian market is facing the kind of turmoil that has disrupted the United States.
The new rules, set to take effect Oct. 15, are a "responsible and measured approach … to reduce the risk of a U.S.-style housing bubble developing in Canada," the Department of Finance said in a news release.
However, it also said that Canadian creditors' "prudent and cautious approach" to mortgage lending, as well as sound supervision, have "allowed Canada to maintain strong and secure housing and mortgage markets."
The government said the measures will apply to new, government-backed, insured mortgages. "Canadians who already hold mortgages will not be affected," it said.
The changes include:
* Cutting the maximum amortization period to 35 years from 40.
* Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.
* Establishing a requirement for a consistent minimum credit score.
* Introducing new loan-documentation standards.
The government acknowledged that the proportion of bank mortgages in arrears is stable at 0.27 per cent, "near the lowest levels experienced since 1990 and well below the highs of 0.65 per cent experienced in each of 1992 and 1997."
And housing prices don't show evidence of speculation, the Finance Department said, because they are "in line with economic factors such as low interest rates, rising incomes and a growing population."
'0 down mortgages only make sense in a rising market. When the market is 'correcting' or even just flat the 0 down mortgage can quickly become a nightmare for anyone.' --Richard B Add your comment
Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt.
Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price.
The Canada Mortgage and Housing Corp. (CMHC), a Crown corporation, as well as private insurers provide mortgage insurance.
The government backs CMHC and also private mortgage insurers so the private insurers can compete with CMHC.
Just over a year ago, Parliament passed a bill changing mortgage insurance to make home buying easier, and in 2006, CMHC eased the insurance rules.
I think that we will see a housing recession in Western Canada because of the new rules. Housing sales are already down but this will make things worse.
Call or write your MP to voice your dis-satisfaction
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