Bob Alexander on Mon, Aug 27, 2012 wrote:
Hope you are all enjoying the summer and getting ready to get back to normal routines.
Back in July, the Canadian Government made changes to the mortgage lending rules and I would like to review four financing situations that highlight how much impact these changes have going forward.
1) Nullified Switch
The Facts: Your existing mortgage with a remaining amortization of more than 25 years is up for renewal. You have less than 20 percent equity. You have found another lender with a great rate but your gross debts exceed 39% of your income.
The new reality: Kiss the better rate goodbye. Only your existing lender with the higher rate can re-lend without re-qualifying you.
2) Consolidation Blues