New CMHC Rules In Effect On March 18, 2011
New CMHC Rules Come Into Effect on March 18, 2011 …
Just a reminder that the changes that Jim Flaherty, our federal Minister of Finance, announced to the Canadian Mortgage and Housing Corporation (CMHC) back on January 17th are coming into affect on March 18th. These changes have been designed to slow the rate at which Canadians are borrowing and to further stabilize the Canadian housing market. As long as your mortgage application has been submitted by the 18th you will still qualify under the old rules. Today is the last day for 35 years!!!
How Might These Changes Affect You?
If you are a homeowner who might be contemplating refinancing for major renovations and your home has a high-ratio mortgage, the rules have changed in regards to what percentage of your home’s value may be used for refinancing purposes. The refinance loan-to-value percentage used to be 90% and on March 18th it goes down to 85%.
The maximum allowable amortization rate for high-ratio mortgages is about to decrease from 35 years to 30 years on March 18th too.
Questions? Concerns? Will this affect you? Feel free to call or email me anytime! I welcome your inquiries.
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