New government guidelines and how they affect borrowers
Courtesy of Jackie Bowen, Mortgage Broker
Effective March 18, 2011, the following changes will be in effect:
- Maximum Amortization on mortgages higher than 80% Loan to Value will be 30 years (currently 35yrs)
- Maximum Amount an existing home owner can refinance to will be 85% (currently 90%)
- CMHC will no longer insure Secured Lines of Credits (Effective April 18, 2011)
How Does This Impact Home Buyers and Owners Monthly Payments?
Scenario:
Mortgage Amount: $300,000
Interest Rate: 3.79%
Monthly Payment with 35 year: $1285.56
Monthly Payment with 30 year: $1391.12
Difference: $105.56 higher payment with new rules
Examples of what effect the NEW Mortgage Rule Changes will have on borrower qualification
You can follow any responses to this entry through the RSS 2.0 feed.