New Mortgage Rules
I wanted to make sure that you knew about the new rules taking affect on October 15th by CMHC. I’ve heard from a good source that the other two insurer’s, AIG and GE, will follow suit.
No more 40 year Amortized Mortgage. Reduced to 35 years. Which is not that huge of a problem. It’s the minimum 5% down that concerns me a little.
They say they’re trying to prevent a huge crisis in Canada, similar to what we’ve seen in the United States.
I would imagine that the summer market should be a little busier as people try to get in, then after that we may be into a slowdown. Only time will tell what this will do.
Here’s an article on this news http://www.globeinvestor.com/servlet/story/RTGAM.20080709.wmortgagestaff0709/GIStory/