Analysts Expect Tightening of Mortgage Rules Again This Year
Sheldon and I have long thought there would be another decrease in the maximum amortization period for mortgages this year. It makes sense since the Federal Government decreased the maximum amortization from 40 to 35 years a few years ago, and then further decreased it to 30 years last year – we always assumed the end goal was to go back to 25 years. According to a Reuters poll released today, we are not alone in our prediction.
The majority analysts polled expect some sort of tightening of mortgage rules this year – it could be an increase in the minimum downpayment (currently 5%), a decrease in the amortization period, or other restrictions designed to reduce household debt levels in Canada. Although the analysts agree that housing is overvalued only in Toronto and Vancouver at this time, household debt levels hit an all time high last year in this country.
It is expected that any changes to mortgage rules will come before the spring housing market, some say between now and the federal budget (expected at the end of March).
Looking at Your Credit Report for the New Year, Part I
The beauty of the New Year is the ability to wipe the slate clean; to start fresh and do what you maybe wanted to do the first time around. This is the perfect time for anyone who has struggled with their credit to take the bull by the horns and get down to making a real change. In fact there’s no better time of the year to order free credit reports and take a look at where you stand financially so that you can take the steps necessary to get into a better position.
Of course with the holidays around the corner most people are more intent on spending within their budget rather than giving any thought to the bigger financial picture. However once the holidays pass it’s time to get back down to business – getting a handle on the reality of your situation and moving on from there. So what should you be doing at the start of this New Year ahead?
Begin the habit of ordering free credit reports throughout the year. The