First time Home Buyers in Toronto

Are you ready to purchase your first property? Being familiar with these initial costs: Mortgage Down Payment, Offer Deposit, Land Transfer Tax, legal fees and moving costs is great preparation.

 Try out the mortgage and land transfer calculators and view other tips on my Buying a Home page or view  Claire Gordon Deposit on an Offer: What? When ? How?

How will the reduction of the term of government backed insured mortgages affect you?

To Torontonians considering longer mortgage time, changes announced by Finance Minister Jim Flaherty will, of course, mean higher monthly payments but also will significantly reduce the total interest paid and build equity faster in your homes.

Changes

• On new  government insured mortgages the amortization period will not be permitted to be over 30 years. 
• Borrowing  amounts to refinance your mortgage will be changed as the maximum amount permitted will be 85 %  of the value of your home, a 5% change.
• Changes also  affect  lines of credit (secured by homes) used for debts unrelated to home purchases. The government has stopped insurance backing of these .

Timeline

• Mortgage changes begin March 18,2011
• Lines of Credit changes  begin April 18, 2011

Claire Gordon - Money matters.

See "Canada’s well-regulated housing sector has been an important strength that allowed us...... and helped protect us from the worst of the recent global recession,” said Minister Flaherty. Department of Finance Canada

Changes in mortgage rules will apply April 19, 2010 -won't affect binding agreements made previously

New rules announced by Finance Minister Jim Flaherty apply to government-backed mortgages. These measures will change the following:

• withdrawal amounts when refinancing


• require 20% downpayment for government-backed mortgage insurance on non-owner occupied properties


• the standard required for five-year fixed rate mortgage will apply to all borrowers
  

"Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010." - Department of Finance Canada

For further information refer to announcement -See Department of Finance Canada