New Mortgage Refinancing Rules Create a Drop

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CMHC says mortgage refinance activity dropped nearly 40 percent…..See full story on this topic »

May home sales fall 9.5% on new mortgage rules

Financial Post- Home sales fell by 9.5% in May across the country, according to the Canadian Real Estate Association.

The Ottawa-based group, which represents 100 boards across the county, said sales activity was down in 70% of local markets but it was the Toronto, Vancouver and Ottawa markets that pulled the national number down.

The group says new mortgage rules which make it harder to borrow and kicked in April 19 pushed people to make a purchase ahead of the spring market. Rising mortgage rates were another reason given for the decline.

“May was the first full month in which sales activity was affected by these changes,” said Georges Pahud, president of CREA. “An accompanying decline in new listings and housing starts means these changes are also affecting the supply side, which will keep the market balanced and Canadian home prices stable…”

May home sales fall 9.5% on new mortgage rules

Should you be concerned about new mortgage rules?

The Gazette- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should you be concerned about new mortgage rules?

Should I be concerned about Ottawa’s new mortgage rules?

Financial Post- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should I be concerned about Ottawa’s new mortgage rules?

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