What mortgage rules? - MoneySense

What mortgage rules?

A new study suggests Ottawa’s tighter mortgage lending rules haven’t deterred many.

  • It’s been one year since the federal government last tightened mortgage lending rules in this country and a recent poll for BMO suggests the majority of potential homebuyers have not been affected. One-in-five (19%) however did say the changes (including maximum amortization of 25 years and loans limited to 80% of the property value for insured borrowers) have prompted them to wait longer to buy. The report also found the average amount first-time home buyers plan to spend is approximately $300,000, with an average down payment amount of $48,000 or 16%.
  • Is the lowly loonie putting a damper on your vacation spending plans? CIBC expects the Canadian dollar to be back at parity with the U.S. greenback by the end of 2014.
  • The U.S.-based National Foundation for Credit Counseling is trying to rid the word “budget” of its negative connotations after a website poll revealed that 57% of respondents misunderstand the purpose of a budget, viewing it as a restriction on their spending. According to the NFCC, budgets can actually free up money as well as relieve financial stress, increase financial security, help structure a plan for the future, allow planning for large purchases, assist in meeting financial goals; uncover money available to invest, allow preparation for emergencies, avoid late payments through scheduling timely payments, find hidden money for debt repayment and potentially raise credit score. We’re convinced!
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