New mortgage lending rules effective July 9th

New mortgage lending rules were announced this morning and will come into effect on July 9th. These rules will affect new home buyers and current home owners looking to refinance.. They are as follows. 1. Amortizations reduced to 25 years from 30 years 2. Refinancing limited to 80% of the home value (was 85%) 3. Properties purchased at over $1 million no longer eligible for mortgage insurance 4. GDS and TDS set at 39% and 44% If you are currently pre-approved or are looking to refinance, please contact me right away to ensure your ability to qualify remains intact.

If you take a walk, I'll tax your feet

It's that special time of year when property taxes are due. If you are a current home owner, you will be receiving, if you have not already, your 2012 Property Tax Notice from your municipality. If you are living in your home, you must claim the Home Owners Grant or Basic Grant attached to this notice in order to receive $570 off of your tax bill. Should you forget to claim your grant, your taxes will be charged to you at full price. If your lender is collecting your property taxes for you with each of your mortgage payments, you must still claim this grant. The lender will then remit the taxes as per the basic grant amount. If you have questions about how to claim your grant or, figure out if you are eligible for the grant, please contact me. The storm of fear is slowing dissipating surrounding changing to mortgage lending. The OFSI or Office of the Superintendent of Financial Institutions, has not officially published their set of final rules however, they have indicated that there will not be a need for mortgage holders to re-qualify for their financing at the end of their term. The Canadian Association of Accredited Mortgage Professionals argued that many people would lose their homes despite perfect repayment history and the OFSI listened. One change we are expecting to see is surrounding secured home lines of credit or HELOCs. It is expected that HELOCs will be restricted to 65% of the home's value however, we expect that interest only payments will continue to be available as so many people use their HELOCs for investment purposes and rely on interest only payments for tax strategies.