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New tougher Canada mortgage rules spark home buying
Canada, 23rd March: Canada’s new and stricter mortgage rules are coming into effect immediately and they are spurring up first time house buyers, several experts have revealed.
The new Canada mortgage rules that became effective on 18th March are not clear to the home buyers in Canada. In such a scenario, they seem to be acting in a haste to cash in on the changes introduced in the mortgage regulations in the nation.
Buyers on a home-buying spree—
According to Ryan DeLuca from Sotheby Real Estate, buyers are oblivious of what the changes in the mortgage rules real mean. And this is causing a spike in home buying in Canada, adds DeLuca. Doug Hayden, a realtor based in Calgary, feels that this has led to a biggest hike in the starter house market.
In terms of sales, the month of January this year has been significantly higher than the previous year and keeping in view the official sales figures, February registered even higher sales volume, adds Hayden. It showed around ten percent higher sales, he maintains. No wonder, many Canadians like Black McCullough are in a haste to grab their first home since they feel it is actually the right time to buy their first homes now.
What are the changes in the Canada mortgage rules?--
• The first change introduced in the Canada mortgage rules includes shorter periods of amortization. For government-insured mortgages, the maximum amortization period has been reduced to 30 years from the earlier period of 35 years.
This rule is for those Canadian home buyers who make a down payment lower than 20 percent of the total home value. And with the new ruling for Canada mortgages coming into effect, mortgages for greater than 30 years will not be able to get qualified for insurance. This also means a full-stop on getting mortgages extending for a period greater than three decades.
• Contrary to the earlier Canada mortgage rules which qualified a family with an annual income of $75,000 and zero debt for a mortgage on a house worth around half a million, the new tougher rules require a Canadian family to have an annual income of $85,000 for becoming qualified for a home mortgage in Canada.
Canada, 23rd March: Canada’s new and stricter mortgage rules are coming into effect immediately and they are spurring up first time house buyers, several experts have revealed.
The new Canada mortgage rules that became effective on 18th March are not clear to the home buyers in Canada. In such a scenario, they seem to be acting in a haste to cash in on the changes introduced in the mortgage regulations in the nation.
Buyers on a home-buying spree—
According to Ryan DeLuca from Sotheby Real Estate, buyers are oblivious of what the changes in the mortgage rules real mean. And this is causing a spike in home buying in Canada, adds DeLuca. Doug Hayden, a realtor based in Calgary, feels that this has led to a biggest hike in the starter house market.
In terms of sales, the month of January this year has been significantly higher than the previous year and keeping in view the official sales figures, February registered even higher sales volume, adds Hayden. It showed around ten percent higher sales, he maintains. No wonder, many Canadians like Black McCullough are in a haste to grab their first home since they feel it is actually the right time to buy their first homes now.
What are the changes in the Canada mortgage rules?--
• The first change introduced in the Canada mortgage rules includes shorter periods of amortization. For government-insured mortgages, the maximum amortization period has been reduced to 30 years from the earlier period of 35 years.
This rule is for those Canadian home buyers who make a down payment lower than 20 percent of the total home value. And with the new ruling for Canada mortgages coming into effect, mortgages for greater than 30 years will not be able to get qualified for insurance. This also means a full-stop on getting mortgages extending for a period greater than three decades.
• Contrary to the earlier Canada mortgage rules which qualified a family with an annual income of $75,000 and zero debt for a mortgage on a house worth around half a million, the new tougher rules require a Canadian family to have an annual income of $85,000 for becoming qualified for a home mortgage in Canada.