The changes coming into place in March are:

1. Amortizations are reduced to 30 years instead of 35 years

2. Refinancing only up to 85% instead of 90%

3. No longer insuring lines of credit

The impact on a 350,000.00 mortgage

1. On amortizations approx $35 per month per 100k in mortgage in the example above $123 a month

2. Access to 5% less equity ($17,500) in the amount above

3. Harldey no impact, lenders didn’t offer insured lines of credit even though they were avaliable.

Summary

This does not impact your down payment, you can still purchase with a 5%  down payment and remember this is for insured mortgages only. If you have a 20% down payment for your purchase or have over 20% equity in your home, your options are still open.

 A refinance is when you are taking money out of your home. This will not impact a simple mortgage renewal unless you were making a change to the mortgage to take more money out.

Rates are still at record lows, and this is a great time to purchase real estate if the fundamentals work for you.

 Angela Calla, AMP

Mortgage Expert-Dominion Lending Centres-Angela Calla

Host of The Mortgage Show on CKNW AM980 Saturdays at 7pm