Buyers: March 18th Amortization Changes

[Travis Munroe]

Just a reminder if you are in the market to buy...

From a mortgage broker whom I have used:

- Maximum amortization is changing from 35 to 30 years.
- The amount a person can refinance their home from 90% loan to value to 80% loan to value.
- Removing the ability to insure Home Equity Lines Of Credit

While these rules take place on March 18th you will still be able to qualify under the old guidelines if a mortgage application is approved prior to the deadline.(Regardless of possession date)

[Kavvy]

Originally Posted by Realtor 1

Just a reminder if you are in the market to buy...

From a mortgage broker whom I have used:

- Maximum amortization is changing from 35 to 30 years.
- The amount a person can refinance their home from 90% loan to value to 80% loan to value.
- Removing the ability to insure Home Equity Lines Of Credit

While these rules take place on March 18th you will still be able to qualify under the old guidelines if a mortgage application is approved prior to the deadline.(Regardless of possession date)

Dumb question, is this correct - refinance is not the down payment, refinance occurs when your term is up?

Also, if anyone knows, how come the government of Canada tool below for calculating maximum amount of mortgage results with about a 4x larger loan than the big banks tools also listed (the Gov't of Canada tool states I can have a mortgage which would bankrupt me, and the banks tools gives me a number which would allow me to have more than enough cashflow)?

http://www.cmhc-schl.gc.ca/en/co/buho/buho_005.cfm

http://calc.tdcanadatrust.com/HMCIA/Input

https://www.rbcroyalbank.com/cgi-bin...much/afford.pl

http://www.cibc.com/ca/mortgages/cal...rdability.html


Thank you

Kavy

[Travis Munroe]

refinance - renew financing. It is not related to your down payment at all.

I tried to govts calculator and had no issues. You are using the payment calculator correct?

[Kavvy]

Originally Posted by Realtor 1

refinance - renew financing. It is not related to your down payment at all.

I tried to govts calculator and had no issues. You are using the payment calculator correct?

Thank you,

I was entering my yearly salary as a monthly rate!