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Urgent Mortgage Update

Dear friends, clients and interested home purchasers;

The Federal Government Finance Minister announced today there will be some significant changes made to mortgage regulations and these changes will start being enforced as of July 9th.

1. The maximum amortization for government insured mortgages will be lowered to 25 years from 30 years. There might still be some lenders offering higher amortizations on non-insured mortgages.

2. The maximum loan to value allowed for insured mortgages will now be 80% and not 85%. Again, there might be some lenders who will go to the higher loan to value and not insure the mortgage, but you will be paying a higher interest rate for this privilege.

3. The maximum mortgage amount that can be insured is now set at $1,000,000. Currently there is no limit put in place by the government. but some lenders already have their own rules on the maximum size of mortgage they will lend.

4. Maximum Gross Debt Service Ratio (GDS) will be set at 39% and the Total Debt Servicing ratio (TDS) will be set at a max of 44% for insured mortgages. The TDS is basically unchanged, but some lenders currently allow a GDS of 44% as well.

These new regulations are meant to curb Canadians borrowing and force them to build more equity in their homes. Gone are the days of no money down and 40 year amortizations which made it very difficult for Canadians to build equity in their homes and lead to irresponsible borrowing.

If you are anybody you know is considering purchasing a new home or refinancing their mortgage, these regulations could impact them. Although the official date these regulations will come into effect is July 9th, lenders and CMHC may start to enforce them unofficially earlier.

If you have any questions please do not hesitate to contact me!

Many thanks;

James @

… OurHomeToronto.com

JAMES R. METCALFE / REALTOR® BROKER

Direct: 416-931-4161

HELPING YOU IS WHAT WE DO

Thank you also to Brad Compton – Mortgage Agent / Invis Mortgages

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James Metcalfe’s Real Estate Update June 2012 … In Our Home Toronto

Here’s our June Real Estate Update for Our Home Toronto: You’ll note Toronto home sales volumes (+11% vs LY) and prices (+6% vs LY) remain strong in May; an interesting article on Fixtures vs Chattels … what constitutes each and why you should be specific when preparing your listing or offer; an article on simplifying Mortgage Speak;  and the ever popular Pearls of Wisdom … here’s a teaser “I used to be Snow White, but I drifted.” – Mae West

Enjoy and do let us know if you would like to receive this update by email.

For loads of Listings and free information on buying or selling Visit OurHomeToronto

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James Metcalfe’s Real Estate Update May 2012 … In Our Home Toronto

Here is our May Real Estate Update for Our Home Toronto: You’ll note average April prices are up 9% vs 2011 for a new all time high average GTA price of  $517,556 & volumes are up 18% vs 2011 for April sales of  10,350 homes sold, an interesting article on How To Optimize Curb Appeal, Personal Finance … HST and your Real Estate investment, a MUST read … How and Why it’s less expensive to buy a home today than it was 20 years ago! and the ever popular Pearls of Wisdom … Enjoy and do let us know if you would like to receive this update by email.

For loads of Listings and free information on buying or selling  Visit OurHomeToronto

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James Metcalfe’s Real Estate Update April 2012 … in Our Home Toronto

Here is our April Real Estate Update for Our Home Toronto: You’ll note average March prices are up 10% vs 2011 & volumes are up 8% vs 2011, an interesting article on Property Tax and Estate Planning, Getting your home ready For Sale … De-cluttering made easy, and the ever popular Pearls of Wisdom … Enjoy and do let us know if you would like to receive this update by email.

For loads of Listings and free information on buying or selling  Visit OurHomeToronto

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SOLD for Record Price / Luxury Renovated Corner Penthouse / One Park Lane

PH15-211 St. Patrick Street is in the heart of downtown Toronto. Move right in to this luxurious suite …1485 sf., 2 Bed, 2 Bath, Wood Burning Fireplace, 2 Car Tandem Parking, Custom Designed Kitchen and Bathrooms, In suite Locker, Indoor Saltwater Swimming Pool. Steps to St. Patrick Subway Station & a Short Walk to Theatres, Galleries Shopping & Restaurants… Spectacular Condo & Value!

Visit this and numerous other exquisite homes and condo listings at www.OurHomeToronto.com

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James Metcalfe’s Real Estate Update March 2012 … in #OurHomeToronto

Here is our March Real Estate Update for Our Home Toronto: You will note Average February prices broke $500K, an interesting article Condo Tenant obligations, Electric Hydro Meters and Smart Meters, and the ever popular Pearls of Wisdom … Enjoy and do let us know if you would like to receive this update by email.

For loads of Listings and free information on buying or selling  Visit OurHomeToronto

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