Mortgage rates

Mortgage rules change Monday, but half of Canadians are unaware: Poll

TheRedPin Team Home Buyers, Mortgage 2 Comments

New mortgage rules go into effect

New mortgage rules go into effect nationwide Monday, but it seems many Canadians have no clue there has been a change.

Starting Monday, lenders are only able to to issue home equity loans up to a maximum of 80 per cent of the property’s value, down from the previous 85 per cent.

The maximum amortization period has also now dropped from 30 to 25 years, meaning borrowers have less time to fully repay their debt.

A poll, conducted by Pollara for Bank of Montreal, found only about half of those surveyed were aware of the new rules and regulations.

In addition, only 45 per cent of respondents knew the amortization period had been shortened.

Federal Finance Minister Jim Flaherty announced the changes on June 21.

The survey also stated the new rules are making prospective home buyers think twice about their purchase.

14 per cent said the changes make it less likely they will buy a new home in the next five years. And 41 per cent still planning to purchase said the new rules will make them more likely to spend less than they originally planned.

Nearly half (45 per cent) said they planned on taking out a smaller mortgage.

The poll was conducted from June 29 to July 4 with a random sample of 1,000 Canadians 18 years and older.

Comments 2

  1. Selena Mariam

    Hi,

    My name is Selena Mariam. I was wondering that do you accept posts on for http://www.theredpin.com/blog/? My content will be on mortgage/refinance topic, so it would be a perfect fit for your website. While going through your site I found it quite interesting to have a make over on new mortgage related issues. So I think its the best time to update your site to add some new original content so that your visitors should be aware of latest trends of mortgage market.

    I will gladly send you my completely original article if you give me your permission.

    Let me know your thought on this proposal.

  2. Sam Hosseini

    Hi Selena,

    thank you for your interest in writing guest posts on TheRedPin Pulse. We most definitely welcome guest posts from select industry experts. Our readers love getting insights from different angles and point of views.

    I would like to have a chat first to both get to know you better and further explain what we do at TheRedPin. Please look for my email shortly.

Leave a Reply

Your email address will not be published. Required fields are marked *