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Mortgage Industry Updates

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The Bank of Canada lowered their Qualifying Rate to 4.79% effective today. The Qualifying Rate is used for qualifying variable rate mortgages as well as terms with less than 5 years. Please refer to my previous blog posting on how a lower qualifying rate can benefit consumers.  

I met with a manger from Genworth last week regarding their programs as well as the recent CMHC announcement and changes (see this post for information on changes). He has confirmed that although they understand the reasons behind CMHC’s changes, they will not be following suit.

Canada Guaranty has also confirmed that they will not be implementing the same changes as CMHC to their “Low Doc Advantage” program for self-employed borrowers however they will be increasing their premiums for this particular program.

As most people have heard, the maximum amortization for insured mortgages is now 25 years.  In order to avoid default insurance, you have to put at least 20% down. What many people aren’t aware of is the potential for a 30 or even 35 year amortization for a conventional mortgage. B2B Bank for example is currently offering 35 year amortizations on both their “prime” and “alternative” lending products. The main reason someone would look at having an extended amortization is for qualification as you can always increase your payments once the mortgage is funded.
 
For any mortgage information at all, please feel free to contact me today.

http://www.christinebuemann.com
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Location: 1596 3rd Avenue, Prince George, BC V2L 3G4, Canada

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