How Jim Flaherty Wants You to Refinance Your Mortgage!
Refinance Your Mortgage – Jim Flaherty’s Way
Monday July 09, 2012 our finance minister implemented new mortgage rules which directly impacts present home owners looking to tap into their equity in near future. Is it a good thing or bad, depends upon what hat you have on. This blog post briefly explains the affect on you as a home owner looking to refinance your mortgage.
Just as a reminder, following are the list of changes implemented on July 09 2012;
- Amortization of Insured mortgages down to 25 years
- Refinancing of existing homes capped at 80% Loan to Value
- Maximum purchase price for insured mortgages limit at $1 Million dollar homes
What group of home owners do these changes really impact?
Those who wish to take equity out to pay off high interest rate loans!
Mortgage Delivery Guy thinks, the home owners with higher consumer debt hoping to pay off by refinancing their home got really hit hard with this new change.
- How big of an impact are we talking about on a $400,000 house?
- 85% LTV gets $340,000 and 80% LTV lowers the equity take out to $320,000.
- It lowers the equity take out by $20,000.
This $20,000 of difference could potentially force a home owner to continue pay high interest on the debts or push them into consumer proposal or even bankruptcy.
In a nut shell, this new change is designed to deter home owners to use their home equity as ATM machines.
If you own your home and your mortgage is up for renewal shortly, I urge you to learn more about your Mortgage triad (CID) profile. Available home equity is not the only criterion banks look at when you apply mortgage refinancing. There are equally important other factors which impact the outcome of your mortgage application
Schedule a Free, No Obligation, Mortgage Strategy Session with Mortgage Delivery Guy to understand the availability of your home equity and how you can lower your debts efficiently and become debt free quicker. What day works for you better Weekdays or Weekends? Simply Call 1-800-808-1613 for quicker response.
Looking forward to help you become debt free quicker in Ontario Canada.