Pssst... I have something to share.....OSFI Made It Official!

I have some interesting news to share. From the blog post I wrote on May 1st, 2013 it seems OSFI has made it official legislation, I guess it was May 1st, 2013 (good call on my blog post).

Here goes the new info that is currently being followed by all lenders and will affect qualification for mortgages.

1) Payment Caculations: Have to use 3% of the balance, on all Unsecured Credit (so interest only payments on UnSecured Lines of Credit are inconsequential - as the 3% of the balance must be used)

2) Market Rents can no longer be used; a lease agreement has to be in place even it is the primary property

3) Alimony/Child Support payments being paid are calculated as liabilities (not as prior subtracted from income)

4) Deficit on rentals on T1s are now also calculated as a liability ( not subtracted from income)

Also what I am hearing is the Finance Minister is going to try to change the amortization allotments for Conventional Mortgages, which currently can be up to 35 years depending on the lender, down to what it is for the Insured Mortgages, which is 25 years. Personally my thoughts on the matter are all mortgages should be 25 years, not the 30-40 years that we had previously. Yes it makes it easier to qualify, but it does not make it easier to pay off when ratios are continually being maxed for purchases/refinances of the past - or if rates rise. Refinances however now are max 80% loan to value, which does help keep spending under control; or at least that is the general idea. However with rates being where they are, using 25 years to qualify should not be an issue, if you are looking at true affordability...and have a goal of being mortgage free in your life time. That all being said, I realize there are strong points of view to both sides, and the grass is not always greener on the other side. But we do have to realize that there is really a bigger picture at work here - not just what we see on the News (which is another discussion all together)... however that bigger picture does affect mostly the New Time Home Buyers, with the new rules and regulations, especially since house prices are really not dropping and quite honestly in what I have seen lately been on the rise.

If you are house shopping you need to make sure you have an experienced Mortgage Agent working along side your Real Estate Agent, to make sure you are on the right track - helping you to meet your goals and education you along the way. GO back and read the blog about Eye Openers to give you more information...but the 4 points listed above are in full swing, ask me how it could affect you..... and get your ducks in a row today.

Are You Paired With the RIGHT Mortgage Product & Rate? Did you even think to ask?

That seems to be a question that not a lot of people ask. "Am I in the right mortgage product & rate?" Everyone is so caught up in getting the lowest rate possible, that it is a race to the bottom instead of stopping and looking at the full picture. According to a survey done by CIBC and posted with The Toronto Star , Canadians do not think they will mortgage free till 57! Now is this due to people getting mortgages later in life; due to purchase price and down payments?? ... yes I believe partially this is the case. However I think the bigger problem is no long term thinking is being done. With the boom in 2007, it was the big push to "refinance your life" into your mortgage; so cars, boats, quads, credit cards, etc all build into your mortgage to give you a lower over all payment.... but does this help reduce mortgage debt? There were also those 40 year amortizations and mortgaging over 100% of your homes value. None of these things help anyone to pay o...

Budget 2025 & the Alberta Mortgage Market: What Buyers and Homeowners Need to Know

The federal government has released its 2025 budget, and while the focus is largely on long-term housing supply, there are several key items that matter for buyers, homeowners, and investors in the Edmonton-area markets — including Spruce Grove, Stony Plain, St. Albert, Leduc, Beaumont, and Sherwood Park . Below is a clear, Alberta-specific breakdown of what changed, what didn’t, and how this affects mortgage decisions over the coming year. 1. The Rate Environment: What It Means in Alberta The Bank of Canada recently reduced its policy rate to 2.25% , bringing mortgage prime down to 4.45% . This matters for our markets because: Variable-rate mortgages are becoming competitive again. Payment shock for renewals may ease slightly. But—and this is key— we do not expect dramatic further rate drops due to ongoing inflation pressures. Bottom line: Alberta borrowers now have more flexibility. Variable may start to make sense again, but choosing between fixed and variable...

Divorce, Separation & Mortgages in Canada: What Happens to the House?

Separation and divorce can feel overwhelming. Questions start piling up fast: Who keeps the house? Can I qualify for the mortgage on my own? How does a spousal buyout work? What happens to our joint debt? Can child support or spousal support count as income? What if I’m the one paying support? What if I don’t currently have a job? What if we don’t have 20% equity in the home? When emotions are high, housing uncertainty can become one of the most stressful parts of the process. The good news? There are mortgage solutions available in Canada specifically designed for separation and divorce situations — and most people do not even know they exist. As a licensed mortgage broker, this is something I help clients through every single week. The mortgage side of separation does not have to be the hardest part. The Biggest Question: “Can I Keep the House?” In many cases, yes — it may be possible. Canada’s mortgage insurers, including Canada Guaranty , CMHC , and Sagen , offe...

Ariana Leroux Mortgage Blog

Search This Blog