How will the new mortgage regulations from July 9th affect me?
Monthly Payment:
With the July 9 change in mortgage regulations, insured mortgages (less than 20% down payment).are now subject to a maximum amortization of 25 years. This is a reduction of 5 years from the previous 30 year amortization.
Insured (less than 20% down payment) : The biggest change will be the loss of 30 year amortization. If you are putting less than 20% down on your home for down payment, the MAXIMUM you can amortize your mortgage is now 25 years. This means that if you put down 5% on a $400,000 purchase price, your payment would go from approx $1637/m (30 yr amortization) to approx $1836/m(25 yr amortization)*. The difference would be apprx $199/m or $99.50 bi weekly.
Conventional (20% down payment or greater): You still have access to the 30 year amortization and can put down as little as 5% on the purchase of your new primary residence.
As you can see, there is not a significant change in the monthly payments. Rates have never been lower and the market continues to remain aggressive. There has never been a better time to buy!
Trevor Yerema
Manager, Residential Mortgages
TD Canada Trust
Prairie Region
Phone: 403-466-6654
Fax: 403-770-8382
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