Market Update | Wayne Mah

UPDATED: It was confirmed today by Finance Minister Jim Flaherty that indeed these are the rule changes. The first 2 will be in effect March 18, 2011 and the 3rd one April 8, 2011.

The benefits of having time shift for TV in Canada. CTV News is announcing that a new conference has been called to announce the changes to the mortgage rules in Canada. According to the report the changes are a follows:

1. Mortgage amortization periods will be reduced to 30 years from 35 years.
2. The maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85 per cent from the current 90 per cent.
3. The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.

Overall these changes are not as bad as some of the speculation that have been reported.

Timing of these changes are not know at the time of this writing. My guess would be, assuming an announcement tomorrow, March 17, 2011.

For the news report reference go to here CTV News.

What do you think about these changes? Will it affect you?

Your comments are always welcome.

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A new program was recently launched that I believe will benefit both sellers & buyers in today’s marketplace. It is called the Buyer Protection Plan.

One of the greatest obstacles for sellers currently is the reluctance of buyers to make that purchase as they believe that prices will come down. Who can blame them? Depending on the day or news source, there are wide ranging forecasts – from the housing market is in good shape, to a possible slight correction in price, to a “housing bubble” that will mean a dramatic price reduction. So, many buyers are just waiting…Sellers in the meanwhile will have to choose between withdrawing their home from the market or reducing the price.

What if we could take some of this fear away? Well, this is where the Buyer Protection Plan comes in.

The program is designed to reimburse the purchaser a preset amount should the property value drops by 5% or more a year after the purchase. It is almost like a “partial price guarantee”.

For sellers, this program makes their property a bit more attractive and differentiates it in the marketplace. For buyers, it provides them with a level of confidence that if they buy and prices do go down they will get some of the money back.

The Buyer Protection Program is only offered via approved mortgage brokers and approved realtors.

For more information and details visit Buyer Protection Plan.

What are your thoughts on this new program? As always, I would like to hear from you.

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