As of today, April 19th, 2010, the following changes have officially come into play in connection with the announcement made by the Federal Government earlier this year:
1. Home owners will only be able to refinance their homes up to 90% of its value. As recently as last week, homeowners were able to refinance up to 95%, but now will only be able to take out up to 90% of the equity from their homes.
2. For any mortgage term shorter than 5 years, and for variable rate mortgages, consumers will need to qualify at the greater of new Bank of Canada Posted Mortgage Interest rate or the Contract Interest Rate. Last week, for terms shorter than 5 years, borrowers were able to qualify at the Contract Rate. This change makes a tremendous difference to buyers who were on the bubble.
3. Those looking to purchase rental/investment properties will now need to put a minimum of 20% down on the purchase of rental/investment properties.
For more information about how these changes would/could effect you, call one of the qualified mortgage professionals at Alberta Mortgage @ 780-479-2222, or visit www.albertamortgagecentre.com.
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1 comment:
Thanks for the update. I'm presently paying a mortgage plan that is very high and I'm already planning to refinance by shifting to a plan with a lower interest rate. I would definitely be considering your post before I engage in another mortgage plan.
It would also be of help for first time home buyers to consult Alberta mortgage brokers to be able to lock in the interest of their purchase because they will soon discover that the value of properties are very volatile these days.
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