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?

New mortgage rules target select few

Financial Post- The new mortgage rules coming into effect April 19 may prevent some cashless couples from buying a house until they can muster a 10% down payment, but they have largely drawn a yawn from the real estate industry. The real target? Real estate investors, who will now have to come up with a 20% down payment to take on their next property or be forced to buy mortgage insurance.

Finance Minister Jim Flaherty said as much in announcing the changes. "The measures will not affect the ability of a Canadian family to buy a house. It will affect those who are speculating," Flaherty said. "What we’re getting at is the speculation in multiple condominium units in particular which we see in Vancouver, Montreal, Toronto and in some other places in Canada…"

New mortgage rules target select few

New mortgage rules leave homebuyers confused

Financial Post- Under current mortgage-lending rules, buyers with a down payment of less than 20% of the purchase price must purchase mortgage insurance, with the most common source being Canadian Housing and Mortgage Corp. The new rules affect only customers that are required to purchase the insurance.

Under the new rules, all buyers requiring mortgage insurance will have to meet the "ability to pay" for a higher, more expensive five-year fixed-rate mortgage even if they choose a mortgage with a lower interest rate and a shorter term.

"It’s not just first-time homebuyers who are affected. It’s anyone who wants a variable mortgage rate now who doesn’t have one already, they now have to qualify at a higher interest rate. Some of them won’t qualify…

New mortgage rules leave homebuyers confused

No Canadian housing bubble: Bank of Canada deputy governor

Vancouver Sun- The Canadian housing market is strong, but it is not experiencing a bubble, Paul Jenkins, senior deputy governor of the Bank of Canada, said Monday.

The federal government said last week it will bring in new mortgage rules to cool the housing sector and prevent home buyers, tempted by record low interest rates, from overextending themselves.

At the same time, it said there was no housing bubble, a point echoed on Monday by Jenkins, who was speaking at a panel discussion at the Government of Canada and Financial Times Global Business Leaders Day in Vancouver, where the housing market is especially hot…

No Canadian housing bubble: Bank of Canada deputy governor

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