Toronto real estate market is changing all the time. Particularly now because of the new mortgage and CMHC changes.
Here is a summary. Currently maximum amortization is 35 years. It will be 30 years. This will not have a large impact on qualifying for a mortgage.
Home Equity Loan (line of credit secured by a mortgage) maximum 80% of the purchase price.
Now Toronto home owner can refinance up to 90%. But after March 18 2011 you can refinance up to 85%.
5% down payment still available for purchases.
The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.
The first change is likely to have the largest impact. Buyers who purchase Toronto real estate with less than 20 per cent of the value of the home are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.
Under the new rules, mortgages amortized over longer than 30 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 30 years in Canada.
The deadline is around 18th of March.
You have to be approved prior to this date to get better conditions.
So if you want to buy Toronto real estate, - buy now!
Mortgage agent Alex Malkhassiants is offering best mortgage rates and advice.
Alexandre Malkhassiants, Sales Representative & Mortgage Specialist,
Right At Home Realty Inc., Real Estate Brokerage
Office: (416) 391-3232
Cell: (416) 723-9383
E-mail: amalkhass@rogers.com
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