The Canadian Government Hates Realtors

Well, not exactly, but it sure feels like it today.

 

As global markets are in turmoil, the Canadian real estate market remains strong and solid.  Recent stats have all pointed to month after month increases in prices in all markets coast to coast.  Following on the heels of more positive market news the Federal Goverment today acted to stamp some of the life out of the market.

 

This morning, Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. CAAMP was actively engaged in the discussions around these changes which are as follows:

  1. All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term;
  2. The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home;
  3. Non-owner occupied properties will require a minimum down payment of 20%.

There were no changes to down payment requirements or length of amortizations for owner-occupied residences.

 

I agree that consumers need to keep debt in control.  However the problem that I have with this news today is that just a few weeks ago the same Finance Minister stated that "Canadian Banks DO NOT need more regulation, they are capable of regulating themselves" and now this week they move to regulate consumers!!!!  So the banks don't need regulation but the citizens do?

 

 

lethbridge real estate

 

Here are a few of my favorite past articles from my Lethbridge real estate and mortgage blog you might have missed or wish to recommend them to a friend.
Lethbridge Homes for sale - YES, there are still good deals to be had in Lethbridge
Lethbridge Basement Suites - Advice for every landlord
Lethbridge Condos - Condo living is great for student but also for seniors!
Buying real estate in Lethbridge - Single women are huge in Lethbridge
Lethbridge Mortgage Application - Avoid these financial mistakes
Get Your Credit Score UP - Invaluable insight into your credit score for Lethbridge residents
Lethbridge Manufactured Homes - Some great deals on manufactured homes in Lethbridge
Lethbridge Rental Property - Thinking about buying or selling rental property?

 

 

 

lethbridge realtor

Robert May is a Realtor, as well as the broker and owner of Rainbow Realty of Lethbridge Alberta . He is also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta. He has been in the Lethbridge real estate industry since 1993 and offers full Lethbridge MLS real estate services to Lethbridge and surrounding area, as well as Lethbridge mortgage financing, mortgage refinancing , preapprovals, and Lethbridge loans financing to Lethbridge and Southern Alberta. He can be found online at this link: mortgage broker Lethbridge





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4 comments • Realtor - Robert May Realtor and Mortgage Broker • February 16 2010 08:53PM

Comments

And will the mortgage rate increase be far behind?  Sad about the 20 percent down for investment properties.  I thought this was a branch of the market we were trying to encourage?

Posted by Jenny Kotulak Oakville Real Estate (Broker RE/MAX Aboutowne Realty Corp. Oakville, Ontario) 6 months ago

I'm waiting to see the Regulations regarding the detailed application of the rules.

Posted by Marc Swartz, CA, CPA, Real Estate Broker Toronto, Durham & York Regions, Ontario (Sutton Group-Heritage Realty Inc., Brokerage (905) 471-2000) 6 months ago

I think the lenders will be quick to come up with some creative solutions to circumvent these changes.

Posted by Realtor - Robert May Realtor and Mortgage Broker (Canada First Mortgage/ Rainbow Realty) 6 months ago

Robert - Like Jenny I feel that this is a signal that mortgage rates are on their way up .... this is the governments way of limiting their exposure to high risk borrowers

Posted by Kathy Clulow ASP® SRES® Offering Full Real Estate Services Since 1973 (RE/MAX Scugog Realty Ltd Brokerage) 6 months ago

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