New World

Welcome to the world of new mortgage lending guidelines! Friday was the last day that insurance companies could accept applications under the old rules. Lenders have been absolutely slammed with people buying and refinancing and we now seem to be in the calm after the storm. The good news is that, for the most part, lending has not been cut back. Mortgages are slightly more expensive because amortizations have been shrunk but, qualifying ratios were relaxed to help with qualification. For the most part, I expect that the new rules will affect current home owners more than first time home buyers. This is because of the fact that we can no longer do refinances under CMHC. This means that 20% equity must be left in a home to refinance as the government tries to prevent us from using our homes as a cash machine. Please remember that if you ever have questions about how these rule changes apply to you and your family, I am always here to assist you. There is no charge for my services or advice and I am always happy to help.