“So, with all these changes coming into affect today, how could it effect my future decisions ?” …… is the typical question I have been getting the last few days.
Quick urgent NOTE .. And/Or Click and watch video below:
This seems to be the Biggest question from anyone involved in Home Ownership, Real-Estate or Mortgages now a days, So here’s a summary of the changes…
The changes we will now see as of April 19th 2010 are:
- Refinancing limited to from 95% to 90%
- Non Owner Occupied properties will require a 20% downpayment
- Variable rate mortgages and 1-4 year fixed rates now qualify at a 5 year fixed POSTED (MQR) rate instead of 3 year (discounted) rate.
Who it hurts?
Canadians who were planning on purchasing an income or rental property with putting less then 20 % down.
Those that put 5% down on a house, used a loan to upgrade and renovate, now can only borrow up to 90%..and not get the other 5% back
Purchasers – your variable rate pre-approval amount will be lower after April, for example… March 2010 you may be pre approved for $300,000 and in March 2011 with the same income, you may only qualify for $220,000….. these are pure assumptions…. if we only had a crystal ball eh?
( I suggest watching the ENTIRE video, it’s 6 minutes that can help )
If you know someone that should know these New Rules please forward this Video Blog