LET’S SET THE RUMOURS STRAIGHT REGARDING THE POSSIBILITY OF 30 YEAR AMORTIZATIONS BEING TAKEN AWAY
In recent articles released through the media there have been rumours that more rules and regulations could be put in place on federally registered financial institutions. The one big one in particular is the rumor that 30 year amortizations will be taken away. Some might be asking, “wait a minute, were they not already taken away?” You would be partly correct. Last July, Finance Minister, Jim Flaherty reduced the amortization available for insured mortgages from 30 to 25. Your mortgage has to be insured if you have less than 20% down payment or equity in the property. This new change would refer to conventional financing; meaning people with more than 20% down payment or equity in their home.
In a recent article featured below the Finance Minister has put this rumour to rest. He dismissed fears around the Canadian housing market and thinks its unfolding as wanted and expected with no further tightening of mortgage rules at this time.
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