Vancouver Real Estate Loses the Big 40
Posted July 9th, 2008 in Buying or Selling, Real Estate
40 Year Mortgage is Dead
What’s the Reason?
“Loose standards” are according to Mark Carney, our Bank of Canada governor, becoming a concern. Developments in our lending sector have attracted the governor’s critical eye to ensure abuses witnessed south of the border don’t happen here.Affect on the Market
This new rule will eliminate a segment of buyers who have high incomes but little in the way of down payment. High priced homes just lost another potential buyer. Time for further price reductions. On the plus side it’s a welcomed intervention by the bank that helps ensure Canadians don’t fall into the same mortgage pit south of the border.Got a Vancouver Real Estate question? Always happy to do my best to answer it. Call or send me an email. Larry
I wonder if private insurers like Genworth will continue to insure these mortgages.
Norm,
I pre-suppose that Genworth will have to follow similar rules as CMHC since mortgage amortization is what is being doctored by the Feds.
Since Genworth is the insurer would they have any jurisdiction over the length of the amortization?
Doubtful.