Tougher mortgage rules to cut down default risks

February 18, 2010

Below is a CTV News report, dated February 16, 2010.

Ottawa has tightened the rules for obtaining a government-backed mortgage, as it casts an eye towards expected future interest rate increases and the risks those pose for Canadian homeowners.

Finance Minister Jim Flaherty announced Tuesday morning that prospective homeowners will soon have to meet the requirements for a five-year, fixed rate mortgage — as opposed to the three-year standard in place right now. The rule will apply even if they choose a mortgage with a lower interest rate and shorter term.

View the video and read the article here.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

Return to homepage.

Fixed rate or variable rate mortgage?

February 6, 2010

TORONTO, Feb. 1 /CNW/ – With interest rates at a record low, a growing number of people are looking to purchase a home. Every homebuyer faces the age-old question of whether to choose a fixed or variable rate mortgage.

“The question of whether to lock in to a longer-term fixed mortgage rate or stay in a variable rate has become an increasingly complex and important debate,” said

Doug Porter, Deputy Chief Economist, BMO Capital Markets. “Short-term rates are at historic lows and pressure is likely to build for higher rates in the year ahead.”Research shows that over the past 30 years it has been more cost-effective for borrowers to have a variable rate mortgage 82 per cent of the time. Read more

Deciding on a mortgage

February 3, 2010

It is generally less expensive to continually roll over a short-term mortgage than to commit to a long-term one

By Eric Tyson and Tony Martin, published on Tuesday, Feb. 02, 2010.
This is the sixth in a series of 10 excerpts from Investing for Canadians for Dummies.

savemoney.JPGWhether to go for a short- or long-term mortgage is an important decision in the real estate buying process. You need to weigh the pros and cons of each and decide what’s best for your situation before you go out to purchase real estate or refinance. Read more