Well it's about time!
Hopefully we'll never become like the United States.
Not only is their housing market in the dumpster but alot of their old and new homeowners are there too. Losing their homes does not bring trust, credibility or hope into their purchaser's hearts.
THE NEW RULES FOR GOVERNMENT BACKED MORTGAGES:
Purchasers must meet the requirements for a 5year fixed mortage rate. Long term or short term
Purchasers will be allowed to refinace their mortgages to 90% of the value of their homes.
Purchasers who are investors/speculators will be required to put 20% down payment on their government mortgage insurance on non owner occupied properties.
OUR GOVERNMENT IS TRYING VERY HARD TO AVOID;
1. A HOUSING BUBBLE
2. AVOIDING PURCHASERS AND HOMEOWNERS FROM GETTING OVEREXTENDED
3. KEEPING AN EYE ON LENDERS FROM TAKING RISKY COMMITTMENTS
THESE RULES WILL COME INTO FORCE STARTING APRIL 19TH, 2010
Current interest rates are enticing Canadian Purchasers to affordibly enter our housing market. Needless to say these purchasers must borrow prudently and in the end must be able to manage their mortages and the debts when the interest rates rise.
Purchasers must understand fully the meanings of GDS and TDS
GDS; Gross Debt Service Ratio looks at the the purchasers income and subtracts mortgage payments, taxes and sometimes even heating costs.
TDS: Total Debt Service Ratio looks at costs to carry their dream home and all of their debt payments against their total monthly income
For more information or explanation feel free to call me or come in and meet me.
Century 21 Heritage Group Ltd
416-565-1200 direct line to me
905-883-8300 ext 3027 my office and leave a message