Federal Finance Minister Jim Flaherty announced tighter mortgage rules on Monday Jasnuary 17th, 2011. To address concerns over high Canadian household debt.
Comments: Is it possible for me to know my mortgage worth before I look for the house I want to buy? Let me say it this way, which mortgage company in Canada may be able to look at my papers and say we can finance a house up to $x for you. That way I don't waste a lot of time looking for something no one will help me buy.
Recently a National Post article brought up an interesting issue. Are parent's fueling the real estate boom in Toronto by giving their children a down payment to purchase a home now rather than let them take time to save it up on their own.
IN a recent blog, Garth Turner, a former MP, said that this is running counter to the government's attempt to cool the real estate market by getting people into the market before they normally would be entering it.
He felt that this was throwing the natural forces of the market off. I'm not so sure about that.
When I got married and started looking at our first home, my parents gave us some money for the down payment. I found out years later that my grandparents did the same thing for my parents when they bought their first home.
If this has been going on for 3 generations in my family, I think it probably is going on in plenty of other Canadian families.
Sometimes people look for a problem when there isn't one.
Mortgage rates in Canada have remained the same since November. A 5 year fixed rate mortgage for someone on approved credit remains at 3.39%. A variable rate mortgage expiring in November 2018 is available for Prime - .50% or 2.50% at this time. It appears that variable rates will remain stable throughout 2014 with the likelihood of going up in 2015.
Fixed rates are based on the bond market so they will likely rise and then fall as the year progresses.
Mortgage rates available from most mortgage brokers are still low. A 5 year fixed rate mortgage is available for 2.99%. A 5 year variable rate would be Prime - .60% or 2.40%.
Qualifying for a mortgage has become more difficult. I suggest dealing with a mortgage broker rather than a bank as they have more options for you./ If you are self employed a broker is a definite advantage.
Bank of Canada Says Home Prices Overvalued as Much as 30%:
Canada's housing prices are overvalued by as much as 30 percent, the central bank said in its latest assessment of a financial risk that's built up over years of rising prices and low interest rates. Ref. Source 8
Mortgage rates went up last week in Canada. A 5 year fixed rate for A clients has gone up from 2.59% to 2.69% with a few no frills mortgages available at 2.64% if they close before December 31.