new mortgage rules?

[NoBrakes!]

interesting...



any truth to it?

 

[TylerG]

interesting...



any truth to it?

yes, lots of truth to it....... in some ways I understand it, in other ways its frustrating, especially when trying to upgrade our home.

 

[Bnorth]

Yes. Interest rates will rise as much as many think they won't. When I bought my place last year I evaluated my monthly cash flow at a mortgage rate of 5% as I firmly believe when I renew my mortgage in another 4 years my interest will have effectively doubled while home value will have increased minimally. It is up about 10% from last year and I don't expect much growth in the next 4 years.

 

[NoBrakes!]

yes, lots of truth to it....... in some ways I understand it, in other ways its frustrating, especially when trying to upgrade our home.

Tell me about it, we are currently trying to upgrade... our lower pre approval should hold up if we buy by the 17th but whats it going to be in 5 year...

 

[TylerG]

Tell me about it, we are currently trying to upgrade... our lower pre approval should hold up if we buy by the 17th but whats it going to be in 5 year...

You have to have all paperwork in to the bank on a firm purchase by the 17 for this not to affect you

 

[rgashkei]

I don't see an issue with this, just makes people not buy outside their income if rates go up. I know whenever we qualified for a mortgage it was way higher than we thought we could afford, so we have never bought even close to what we were approved for.

 

[TylerG]

I don't see an issue with this, just makes people not buy outside their income if rates go up. I know whenever we qualified for a mortgage it was way higher than we thought we could afford, so we have never bought even close to what we were approved for.

when we started looking at new mortgages, it was prior to my layoff, when the broker came back and said somewhere in the neighbourhood of $800,000 I was beyond shocked.

We know where we want to be with our payments and what we want in a place and will hold out for that..... if our place ever damn well sells.

 

[arff]

The new rules are correct.
CMHC is being cautious and don't want to be stuck with default mortgages.

20 to 25 percent down and it won't effect people. I realize that is a lot down.


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[sc800]

The new rules are correct.
CMHC is being cautious and don't want to be stuck with default mortgages.

20 to 25 percent down and it won't effect people. I realize that is a lot down.


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Unfortunately OFSI is making it for people putting 20% and all conventional mortgages also.

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[pfi572]

The small down payments haven't even covered the Realter fees in most cases.
It's just crazy the amount folks have been willing to finance and get approval for?

 

[Murminator]

Well all I can say i'm glad to be out as of Oct 1 I am a mortgage free man took us 15 years (which seemed like forever) to pay it off a 25yr mortgage dunno what it would be like to pay on a 30 or 35yr like what it sounds like there are abolishing

 

[Bnorth]

The small down payments haven't even covered the Realter fees in most cases.
It's just crazy the amount folks have been willing to finance and get approval for?

Especially in Vancouver and Toronto. People are borrowing down payments from the bank to get mortgage approval. Can you say terrifying?

 

[X-Treme]

Link doesn't work.

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[Pinner]

15 years ago we were paying 6% 25 years ago 15% 35 years ago 22%....just for kicks figure your current mortgage at a higher rate.


https://www.cmhc-schl.gc.ca/en/co/buho/buho_021.cfm

 

[NoBrakes!]

Link doesn't work.

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Four major changes to Canada


I agree there are people that will get in over their heads, always will be. Just sucks that it will be tougher for others to purchase rental/vacation properties and everything else.

 

[Murminator]

15 years ago we were paying 6% 25 years ago 15% 35 years ago 22%....just for kicks figure your current mortgage at a higher rate.


https://www.cmhc-schl.gc.ca/en/co/buho/buho_021.cfm

Yup my 1st house interest was 15% and i though we did good negotiated 12.75%

 

[the_real_wild1]

Look at what the houses cost 35 years ago too! If love to get a brand new house for 100 grand again.

 

[ferniesnow]

15 years ago we were paying 6% 25 years ago 15% 35 years ago 22%....just for kicks figure your current mortgage at a higher rate.


https://www.cmhc-schl.gc.ca/en/co/buho/buho_021.cfm

In the early 80's, our interest was going to go to 18%. We sold, I went on a sabbatical leave, and when we came back from university we commenced to build a new one with no mortgage. I can't imagine the mortgage payments of some of the young people these days and all the other "necessities" that they are paying on.

Sure glad I'm an ol' fart!

 

[pfi572]

Houses are cheap ? Interest rates are high.
Housing prices high? Interest rates low .
Always in the banks favor.

 

[ferniesnow]

Houses are cheap ? Interest rates are high.
Housing prices high? Interest rates low .
Always in the banks favor.

Funny how that works, eh?