On January 17th, Finance Minister Jim Flaherty announced adjustments to the rules for government-backed insured mortgages that will come into force March 18th, 2011.
So, if you’re looking to refinance your mortgage after this date, you will only be able to access 85% of the value of your home (instead of the current 90%). As well, the maximum amortization will be lowered from 35 years to 30 years – resulting in increased mortgage payments for those who would typically opt for longer amortizations.
Additionally, on April 18th, 2011, the government will withdraw its insurance backing on lines of credit secured by homes, such as home equity lines of credit (HELOCs).
Did you know interest rates are now at their lowest level in history? One thing I can tell you for certain is that rates will definitely be going up soon – and some industry professionals think they’ll rise substantially.
Today, Canadians are carrying more personal debt than ever before. It may be really worthwhile to have a quick look at your existing mortgage to see if it makes sense to refinance. We’re finding that even when there’s a penalty for paying out early, you can lower your payments and save thousands of dollars of interest over your mortgage term.
Most consumer debt is at a much higher interest rate, so we have the opportunity to consolidate into a single payment, and save you several hundred dollars per month – while, at the same time, saving you thousands of dollars in interest. Why make several different payments each month and throw away tons of money in unnecessary interest when rates are so good? The money you save in interest can be used for savings such as RRSPs or RESPs for your family’s future. And with the timing of the new changes, it makes sense to act now.
If this has got you thinking, I’d love to speak to you more about it. It’s a really simple process for me to conduct a confidential mortgage review. You may gain complete certainty you’re already receiving the best rate and mortgage available! Otherwise, we can save you some money and make life a little easier. Please let me know if you have any questions.
Andrea Johnston A.M.P.
Mortgage Agent Lic#M08002475
DLC Metro City Mortgages
Tel: 613-968-5151 or Dir: 613-847-0797
E-mail: andrea005@sympatico.ca
Website: www.mortgagesbyandrea.com
