Downsizing to a smaller home or condo can be an effective way to free up equity, but it’s not always the right route. If you’re a boomer looking to cut corners, but can’t bear to part with the family home, consider these options.
Homeowners looking to take out a home equity line of credit will find their borrowing power slashed as the National Bank enforced a 65 per cent LTV cap which takes effect today.
OSFI has released their final draft guidelines on mortgage underwriting principles. Expected to be in full compliance by the end of the 2012/13 fiscal year, the guidelines are targeting the borrowing capacity of mortgage seekers, establishing sound appraisal processes as well as effective credit and risk management measures.
CAAMP’s semi-annual report has arrived, and it’s full of latest stats and issues surrounding the current state of Canadian mortgages. A big point of interest lately are the draft guideline changes proposed by the OSFI. Federally-Regulated Financial Institutions have reviewed the recommendations, and the verdict is in on renewals, HELOCs and AVMS. Read on to find out what will change and what will stay the same – and how it’ll affect you.
Great news for homeowners! OSFI has revised proposed changes made in March to mortgage renewal and HELOC guidelines. The changes, which would have subjected home owners to a new credit risk check upon renewal, as well as imposed an amortization rate on home equity line of credit, were revised in light of criticism that they would cause more harm than good to the Canadian housing market.
Over the last week the Real Estate Board of Greater Vancouver (REBGV) and Toronto Real Estate Board released their monthly real estate market reports. Here is a summary of their findings.
After the CMHC announcement hit headlines last week, a few lenders changed their guidelines for promotional rates offered. The lenders revealed that the promo rates are no longer offered for conventional mortgages anymore and they are only looking at high-ratio deals. CMHC claimed that their cap wouldn’t affect qualified home buyers nor would it affect the cost of buying a house. Ahemm… the last time I checked, putting LESS money down on a home to qualify for a lower promotional rate, increases the interest payments made over the life of your mortgage, thereby directly affecting the cost of buying a house!
Less Canadians are treating their homes like an ATM. The report by the Canadian Housing and Mortgage Corporation (CMHC) says, since new stricter rules were brought in last year by Finance Minister Jim Flaherty, refinancing activity of insured mortgages has dropped by 40%.
The largest debt you will face as a homeowner is your mortgage. With proper budgeting, and a steady income, making each and every mortgage payment on time and in full certainly sounds doable.
In January of this year, Jim Flaherty, Canada’s minister of finance, announced that new mortgage and HELOC restrictions were to come into effect in March, 2011. The purpose of the new restrictions was to help curb consumer debt, which was said to be rising at an alarming rate. So have Flaherty’s restrictions brought the stability he sought, or are consumers only sinking deeper into debt?