(1888PressRelease) March 01, 2011 - Vancouver BC - Announced in January, the Canadian Mortgage Insurance program changes are fast coming into effect. These new Mortgage Insurance changes may effect home buyers in Canada.
Summary of Changes:
Maximum amortization is decreasing down from 35 years to 30 years.
Maximum Equity Take out is decreasing from 90% to 85%.
Canadians will no longer be able to secure a line of credit on their homes if the loan-to-value is under 80% on insured lines only.
The Canadian Credit Center (CCC) spoke with Jared Dreyer, Accredited Mortgage Professional and President of VERICO Dreyer Group Mortgages Vancouver. He says "I have been getting numerous emails and calls regarding the new mortgage regulations coming into effect March 18th, 2011. While they don't effect everyone, a short conversation and getting pre-approved should protect you against the changes". Dreyer adds, "Anyone considering Refinancing, Purchasing a New Property, or Making ANY Changes to their mortgage should call their mortgage broker now".
Jared Dreyer commented further on how these Canadian Mortgage Insurance Changes may affect home buyers in Canada.
CCC: Does the mortgage for either a purchase or a refinance have to close by March 18th.
Jared Dreyer: "No, it has to be a firm contract and approved before March 18th, however it can close after."
CCC: If I have a pre-approval but have not found a home before March 18th, how does this affect me?
Jared Dreyer: "It has to be a firm contract in place before the 18th, however it can close after the 18th."
CCC: If I have a 40-year amortization and when it comes up for renewal will I get a 30-year amortization or 35- year?
Jared Dreyer: "You will get a 35-year amortization."
CCC: What if I am in a 35-year amortization and would like to refinance some other debt into my mortgage?
Jared Dreyer: "If you get it approved before March 18th a 35 year amortization will be available, after the 18th it will be a 30 year amortization."
CCC: I'm thinking of porting my mortgage over to another home I've bought as I've sold mine, what happens?
Jared Dreyer: "Each lender seems to have a different policy on this, if you are thinking of selling and porting your mortgage please let me know and I will find out."
Remember that until you apply to a lender and receive a pre-approval, you will not avoid these changes.
For more information on these changes and if they will effect you, Contact the independent Vancouver mortgage team of Dreyer Group Mortgages 1-800-687-9020 or go online www.dreyermortgages.ca
Deadline March 18th, 2011