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.
Fixed rate or variable rate mortgage?
February 6, 2010
“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
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.
Whether 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
