Individual's Income

On February 16th the minister announced that there will be a change towards the how an individual's income will be calculated towards the amount of money one can borrow. They will no longer use the market rates after discretion towards calculating the TDS ratios. They will use the posted 5 year rate which is often 1% higher than the market rate. This will reduce the amount of money one can borrow. These measures and being implemented to insure long term stability in the financial markets and to avoid a subprime crises as we saw in the US over the last few years. This will also ensure home buyers can afford their monthly MTG payments a few years from now when interest rates start to rise. The new regulation will be active as of April 18th. All MTG application submitted before than will not be affected by the new regulations.

There will also be changes made towards everyone who would want to refinance their house from the CMHC. The max one could refinance would be 90% loan to value of the property. In the past we could refinance up to 95% loan to value. This will also help Canadian accumulate wealth in their properties. Overall these measures will benefit the Canadian economy enormously over the long run.

On February 16th the minister announced that there will be a change towards the how an individual's income will be calculated towards the amount of money one can borrow. They will no longer use the market rates after discretion towards calculating the TDS ratios. They will use the posted 5 year rate which is often 1% higher than the market rate. This will reduce the amount of money one can borrow. These measures and being implemented to insure long term stability in the financial markets and to avoid a subprime crises as we saw in the US over the last few years. This will also ensure home buyers can afford their monthly MTG payments a few years from now when interest rates start to rise. The new regulation will be active