No More 35 years

Tighter mortgage rules will hit B.C. the hardest

VANCOUVER -- Tighter mortgage rules announced Monday by the federal government will have a disproportionate effect on the purchasing power of homebuyers in Metro Vancouver.

Amid rising concern about increased household debt in Canada, Federal Finance Minister Jim Flaherty cut the maximum amortization period from 35 years to 30 years and tightened the rules for mortgage-backed lines of credit. Canadians will only be able to borrow up to 85 per cent of the value of their homes, down from 90 per cent. 

And Ottawa will no longer insure the popular home equity lines of credit.

The amortization change, which affects purchases with a down payment of lower than 20 per cent, means somebody with a four-per-cent rate on a $300,000 mortgage would pay about $100 a month more.

Read more: http://www.vancouversun.com/business/technology/Tougher+mortgage+lending+will+affect+most/4117984/story.html#ixzz1BLXTyKdE

Categories
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.