Vancouver Realty Online

Federal rules tightened slightly yesterday when a new set of mortgage restricting criteria were announced in Ottawa. Finance Minister Jim Flaherty was quick to assure the media, however; that the changes were not in response to a ‘housing bubble’, but a proactive step to assure the market stays responsible…

Vancouver Sun, February 16, 2010

Federal rules introduced Tuesday to tighten mortgage requirements will squeeze the purchasing power of the average Metro Vancouver buyer by $40,000 to $50,000, market observers say.

Finance Minister Jim Flaherty, amid warnings that too many Canadians are overextending themselves to take cheap, variable-rate mortgages, said buyers who want insured high-ratio mortgages will need to meet tougher requirements.

-Derrick Penner, Vancouver Sun

Please Click HERE for the full article.

For information on how these changes may affect you, please contact Susan today at (604)970-3658.

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With extremely low lending rates, a competitive market environment, and market uncertainty it has become increasingly more important for you to understand the ‘ins-and-outs’ of the mortgage market. For a brief run-down check out Fred Langan’s piece at the Financial Post:

Why do mortgage rates move the way they do? Why don’t the rates march in lock step with other interest rates?

When the Bank of Canada lowers interest rates the big banks usually play chicken for several hours waiting to see who will drop rates first. At the last cut, the TD Bank was the first to lower prime. The others followed within the hour.

Please click HERE for the full article.

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