New CMHC Rules as of July 9th 2012.
The sky will not be falling on the Kingston Housing Market any time soon. The New rules will likely slow the market somewhat and may stall home value increases but will not stop most people from buying. They rules all in all are not a bad thing for the market. Also… Don’t forget, if needed i’m sure the 30, 35, and even the 40 year mortgages could return. But I wouldn’t hold my breathe.
Here are the High-lights:
Maximum Amortization Period
Refinance Maximum Loan to Value
Introducing a new Maximum Purchase Price
Maximum Debt Service Ratio Limits
For clients with beacon scores less than 680
For clients with beacon scores equal to or greater than 680
GDS = [(Principal+Interest+Heating+Municiple Taxs + 1/2 condo fee) / Gross income] * 100
TDS = [(Principal+Interest+Heating+Municiple Taxs + 1/2 condo fee + all other debts) / Gross income] * 100
These rules are subject ONLY to CMHC insured mortgages. For those with more than 20% down or in Equity we still have 30 year mortgages.
Any questions please feel free to ask