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With tremendous experience, a sales Professional with a 20 year background in sales, marketing and management. Excellent interpersonal and communication skills . Proven ability to develop a client base and consistently achieve solid sales results. will be a great asset to our team.
Whether your needs are in commercial, residential, financing, sales or purchase or leasing, He Is committed to help you achieve your goals.
The changes will create the most headaches for cash-strapped first-time homebuyers and those consumers who are increasingly using their homes as ATMs. Still, some experts argue this latest crackdown is for Canadians’ own good.
The moves are expected to slightly dampen demand for housing, and to give the Bank of Canada more time to breathe before significantly raising interest rates.
Mr. Flaherty with other policy makers are increasingly worried about the Canadian consumer, who drive two thirds of the country’s economic activity. Debt to income levels have now reached U.S. proportions, with Canadians now owing $1.48 for every $1 in disposable income.
The changes will be implemented in stages, with adjustments on amortization and refinancing limits coming into force on March 18. Government backing on HELOCs will be removed as of April 18.
Firstly the maximum loan to value (LTV) for refinancing that is Refinancing for owner-occupied properties is reduced to 85% loan to value (LTV) from 90%.
Secondly the maximum amortisation period for conventional and insured mortgages shall be reduced to 30 years from the previous 35 year. Which means for example The average Canadian resale home sold for $344,551 in December. Assume that we have a five-year mortgage at 4 per cent interest, and we put down the minimum of 5 per cent down payment of $17,227, a 35-year mortgage would have monthly payments of $1,441. Shorten the amortization period to 30 years, and the monthly payment would increase to $1,555. This means that you will have to buy a house of lesser value.
However all mortgages approved before March 18th 2011 and not disbursed shall be honored for the loan amount and amortisation term initially applied forand approved. – If additional funds are needed from March 18, 2011, the new mortgage rules shall be applicable.
Pre-approvals issued before March 18, 2011 without a purchase contract shall fall under the new rules upon final approval. All new pre-approvals and modifications to existing pre-approvals received after March 18, 2011 shall be on amortisation of no more than 30 years. for existing Mortgages.
Transferring to another lender: Mortgages with remaining amortisation of more than 30 years can be switched to another lender under the same terms and conditions.
If you are Refinancing or transfer to another lender and requiring extra funds: The new rules shall apply meaning 30 years term and maximum loan to value (LTV) of 85%.
Also, Mr. Flaherty lowered the maximum amount Canadians can borrow against the value of their homes, to 85% from 90%, on a refinancing.
Thirdly Ottawa will withdraw government insurance backing on lines of credit secured by homes for home equity lines of credit, or so-called HELOCs, whose popularity soared in the past decade with growth double that of mortgage debt..
A quarter of funds by home equity lines of credit borrowers are used for renovations. The rest is used in a range of other ways, from vacation to buying cars, daily spending and consolidating debt, according FIRM household borrowing survey last year.
Referring here to home equity lines of credit, which are everyone’s favourite borrowing tool right now. That’s why the feds are trying to curb the growth in these things. What they’re doing is taking away the ability of borrowers to get government-backed insurance for the money they lend out through HELOCs. In theory, this could cause lenders to charge higher interest rates on new credit lines, or to be tougher about qualifying new clients who apply for them. I’ve spoken to a couple of mortgage brokers and lenders and they say existing HELOCs won’t be affected.
All this is not as complicated as it looks, It is meant to make you borrow less because your payments will not allow you to get a higher mortgage, or charge a higher rate of interest to stop people from overspending. Whether it is good or not for our country only time will tell. Hopefully you have found a pre approved mortgage and can get your offer before the deadline and avail yourself of the higher LTV before the deadline.
A good mortgage Broker is your best bet , not only for the loan but they can also shop around for the best rate and basically cater to what type of mortgage you need. More in the next issue of the programs available that may suit you.
YOUR BEST MORTGAGE IS A MORTGAGE BROKER If you need help or guidance CALL FERNANDES MORTGAGE AGENCY TODAY FOR REFINANCING OR NEW MORTGAGES. AS ACCREDITED MORTGAGE PROFESSIONALS (AMP), YOU CAN COUNT ON US.
Tony Fernandes. Chartered Real Estate and Mortgage Broker. 514 943 3309. firstname.lastname@example.org www.aifernandes.com
Montreal newspaper page: C3, left hand side, second
Calgary & Edmonton newspaper page: B1, right hand side, second
The News and Chronicle newspaper have sought out the opinion of Jane Fernandes in an article about her opinion of the new Real Estate Act and how it will impact the Market.
Chinese newspaper EPOCH TIMES uses Jane Fernandes condo specialist and in business as a Real Estate Broker for close to 25 years view on the new V1 condo project in Verdun. see link below for full article.