Canada’s New Mortgage Policies
Recently on Paranych TV, Terry Paranych sat down with Michael Kryton to discuss the change to the national mortgage policy that came into effect as of July 9, 2012. There are two key changes that every Edmonton home buyer should know about:
- The maximum amortization allowed for government-backed mortgages was reduced from 30 years to 25 years.
- Home real estate purchases of over $1 million are no longer guaranteed by the CMHC.
Many people in Canada’s real estate industry are still talking about how these changes will affect the market, whether they are positive or negative overall, and &ndash in particular – what this means for first time home buyers trying to break into the market. Terry and Michael talk at length about these impacts and the discipline needed to save the down payment for a home when the maximum amortization period is 25 years. Overall, Terry has always been an advocate of a shorter amortization period, and encourages all first time buyers serious about getting into the Edmonton real estate market to save as much of a down payment as they can.
Checkout the full Paranych TV video about Canada’s new mortgage policies below:
If you’re a first time Edmonton home buyer and want to know more about breaking into the local real estate market, give the Paranych team a call for more info! In addition to knowing the ins and outs of the market, we can refer you to top Edmonton mortgage brokers who can better help you understand what kind of mortgage you could qualify for.