Paige

Hazel_B

I know that you and FBD are saving up for a downpayment on a house. Did you see that they changed mortgage requirements today in Canada? I think there is only one change that may affect you when the time comes though.

Beads921

I had heard this was coming. Not too sure what all the changes are, but I heard mumblings about changing the minimum downpayment from 5% to 7%? I'm still at least a year, probably 2, away from buying, so I'm not too concerned at the moment because things could change again.

Hazel_B

Beads - The changes mainly concern people who already have mortgages, except for one.

The changes are:

1. Getting rid of 35 year amortization (this is the only new buyer one I think)
2. When refinancing, you can only refinance up to 85% instead of the old 90%.
3. Government no longer insuring house backed line of credits.

Nothing on the downpayment.

Beads921

I see. Thanks for sharing. I swear I heard something about the downpayment on the news, but that could have been in reference to something else.

Hazel_B

Beads - It is very possible you have heard something. I think it is a constant rumour that they are changing the downpayment rule and the conservatives being so quiet about stuff doesn't help. I wish they say that either it is or isn't on the table.

PaigeMcC

I heard about this on the news a few minutes ago.  I don't think it will really affect our plans - we're hoping for a 25 year mortgage, with 10% down.  But it's good info to have!  I hope they don't go screwing around with too much in the next year or so.  We're about 18 months away from starting our "looking"

Hazel_B

Yeah, I was thinking you should be fine..just wanted to keep you posted.

They've really tighened these ones, so if they do screw around with anything I think it'll be the downpayment.

PaigeMcC

I really hope they don't mess with the down payments too much.  10% for us is already $20K, that's hard enough to get!

Hazel_B

I can't imagine them doubling the downpayment from 5 to 10 before you start looking. If they do anything, maybe add a percentage point or two, but not 5.

PaigeMcC

That's what I figured too, Hazel.  I thought that they might raise it to 7% today but thankfully they didn't.  But, as I told FBD, this is just incentive to get our arses in gear.

Hazel_B

Exactly! Also you want as low an interest rate as possible.