The Federal Government has again, brought out rules to curb cusomer spending habits and made for tougher mortgage lending rules.
Effective March 18 - the maximum amortization will be reduced from 35 years to 30 years
Effective April 2011- Refinancing your home to a maximum of 85% of the value as oppose to the current 90%
As well, the Federal Government will no longer insure Home Equity Lines of Credit.
While these strict guidelines are being imposed to prevent consumers going into further debt, this will also prevent a number of consumers from entering the real estate market as first time home buyers. It won't be long when the government will reduce the amortization back to the original 25 years.
Rates are still very low so this is the best time to secure a mortgage loan!
I am an accredited mortgage expert and have been in the industry for the last 8 years. With years of experience in the mortgage industry as well as buying and selling for profit, I like to share tips, knowledge and my expertise of the dos and don'ts of real estate investing, home ownership and mortgage news.
