CMHC Changes Policies for Insured Mortgages

As we have all witnessed in the last couple of months, the Canadian economy, including housing and countless other sectors have been greatly affected by the COVID-19 pandemic. 

The Canada Mortgage and Housing Corporation (CMHC) is bringing in the following changes to limit their assumed risk by changing policies for Insured Mortgages (when someone is buying with LESS than a 20% down payment).

Effective July 1st, 2020 the CMHC will be making the following changes:

  • CMHC is lowering the percentage of your income that can go towards paying your mortgage / taxes / heat from 39% to 35%.
  • Establish a minimum credit score of 680 for at least one borrower. (previously 600)
  • Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

What does this mean for you?

  • The average consumer who has less than 20% down will now have their max purchase price reduced 12%.
  • Your credit score must be higher. 
  • You will no longer be allowed to borrow your down payment. (Gifted funds from family is still ok)

If you or anyone you know have questions regarding these new changes and how it applies to your own personal situation please reach out to our team. We want to inform, equip, and help you navigate these new changes.

Canada’s COVID-19 Economic Response Plan

Every day it seems like we are watching our TV screens waiting for more news from the Canadian Government and their support to its Canadian citizens during this time.

We hope by sharing this Canadian COVID-19 Economic Response Plan we can clarify and show you how the government plans to help during this time.

Our team at Browne Mortgages + More are here for any questions you may have. Call, text, or ask to arrange a video call!

The #1 Reason Rates Are Dropping

The #1 Reason Rates Are Dropping

Here at Browne Mortgages + More we strive to be transparent about the ever-changing mortgage rates. As COVID-19 (Coronavirus) has had a material shock on Canadian and global outlooks, the monetary and fiscal authorities are responding. Because of this, we are seeing fixed interest rate reductions from mortgage lenders across the board.

What does that mean for you?

Today’s current interest rate is 2.49%!

This shockingly fast and low rate drop is EXCELLENT for anyone getting a mortgage or changing their existing one. NOW is the time to make a change to your mortgage if you’re considering the following:

  • Renovations
  • Debt consolidation
  • Second home purchase
  • Rental property purchase
  • Early mortgage renewal

If you’ve considered buying, this is a perfect time!

Our team offers complimentary mortgage reviews to see if making a change is worth it. This change could save you thousands in interest.

 

 

 

The Interest Rate Spring War Has Arrived, Lower Rates to Come

Hi Abbotsford, Chilliwack and Mission mortgage clients! We have good news for you. Rates appear to be dropping further, therefore this may be an opportune time to renegotiate and secure a mortgage. If you’ve considered buying, refinancing or renewing your mortgage, we suggest giving our team a call so we can look at your current mortgage and see if it’s worth making a move.  Here are a few reasons why we believe now would be a good time to review your mortgage or for home buyers, a good reason to consider purchasing while rates are at historical lows.

  • A shifting economy will push the BOC (Bank of Canada) to lower interest rates further
  • Negative growth in demand over the last two quarters
  • The BOC has recently moved to a more neutral bias, rather than tightening
  • US Federal Reserve has entertained the idea to make a cut mid way through 2019, Canada generally follows
  • Recessionary conditions in other parts of the world will likely influence Canada

We have a seasoned mortgage consultant on our team who specializes in placing those looking to refinance, in a strategic mortgage plan during the spring rate wars that take place every year. We are prepared to work hard on your behalf because feeling a little more financially free, or paying off your mortgage sooner, is a priority to each one of our team members.

Give us a call for your complimentary mortgage review.

Source: https://www.mortgagebrokernews.ca/news/boc-will-likely-cut-interest-rates-next–economist-255388.aspx