Now that the dust has settled a bit, there’s some more perspective on what the recently announced changes to the mortgage industry means for the average Canadian. Make no mistake, the changes that come into effect July 9, 2012 and the lowering of the amortization period down to 25 years means you’ll need the services of qualified mortgage brokers toronto more than ever to find you the best deal and rates.
Of course there’s more to the whole picture than just that, and there are more and more mortgage as well as other Canadian experts who are seeing the changes brought about by Finance Minister Jim Flaherty as a good thing.
First and foremost, the shorter the amortization period, the less you pay in interest. The less you pay in interest, the sooner you own the home. Higher payments means you’ll own the home sooner and have more cash of your own quicker than you might had the rates stayed lower.
You can build your home equity sooner. Although you might have less money in your pocket at first, you’ll be getting to the really important part of the payments sooner. Building up your equity means having other choices about what you can do.
As well, refinancing will be limited to 80% of the equity that you’ve already amassed. That’s in keeping with the government’s attempts to make homeowners even more aware that the amount of household debt is reaching levels that should be of concern. With the rates as low as they’ve been for such a long time, the tendency was to overuse the advantage and not keep an eye on the fact these rates would eventually start on the way back up.
All the changes are considered prudent by many mortgage experts and they don’t preclude qualified people from buying and enjoying a home.
