New rules from.Finance Minister Jim Flaherty.

 Here’s a little Q&A on topics that might be top of mind at the moment.

We’ll touch on individual borrower issues first. Then we’ll follow up with a 2nd story on industry implications.

Q:  When must I apply in order to secure a 35-year amortization on a high-ratio mortgage or a 90% loan-to-value refinance?
A:  To be safe, ensure that you are approved by Thursday March 17. Be careful about making changes to your application after March 17 if those changes would require that your application be reapproved. Otherwise your mortgage could be underwritten under the new rules and may not close.

Q:  How are pre-approvals affected?

A:  The act of getting a pre-approval before March 17 does not guarantee you’ll be approved for a 35-year amortization. That’s because insured pre-approvals that turn live after March 17 will be subject to the new amortization limit of 30 years.

“Turn live” refers to the time when a borrower has signed a binding purchase agreement and submitted a full bona fide mortgage application with a specific closing date.

Q:  How will the elimination of 35-year amortizations on high-ratio insured mortgages affect monthly payments?

A:  The payment on a 30-year amortization is $34.72 higher for every $100,000

A:  Lowering the refinance LTV threshold to 85% likely impacts less than a tenth of all refinances (Src: TD).

For those affected, they’ll now be able to refinance anaverage of $17,228 less debt based on the typical Canadian home value. The average Canadian has $25,163 in non-mortgage debt (Src: TransUnion via WSJ). In addition, we’re waiting to confirm how this change affects mortgagors with the Finance Department. We’ll report back shortly once we’re certain. The 85% refi limit also handicaps peoples’ ability to refinance in the event of higher rates or falling home prices. If you’re a mortgage professional, ensure that you counsel clients about

  Q:  Can I still get 40-year amortizations?

Q:  How will the elimination of 35-year amortizations on high-ratio insured mortgages affect monthly payments?

A:  The payment on a 30-year amortization is $34.72 higher for every $100,000 of mortgage, compared to a 35-year amortization. (This assumes a 4% sample interest rate and standard underwriting criteria.)

Q:  How many people will be affected by the reduction to 85% loan-to-value on refinances?

A:  Lowering the refinance LTV threshold to 85% likely impacts less than a tenth of all refinances (Src: TD). For those affected, they’ll now be able to refinance an average of $17,228 less debt based on the typical Canadian home value. The average Canadian has $25,163 in non-mortgage debt (Src: TransUnion via WSJ).

Our associate, Antony Kovic, is the proud father of daughter Michaela – her team won first prize in the first annual Just For Kids Foundation Glee High School Showdown! See below…

First Prize Winners

A poem by Annie MacAra (Reggie’s sister) – be inspired, follow the link below:

poem

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This article is taken from the recent Canadian Real Estate magazine.

Montreal’s booming condominium market is expected to slow moving into
2011, but affordable condo units should still make up the greatest number
of new housing starts in the city, according to the Canada Housing and
Mortgage Corporation (CMHC).

Condominium starts in the Montreal should fall by 11% on a year-over-year
basis in 2011, according to a forecast released by the crown corporation
on Nov. 15. That decline is expected to come after another record year in
which condo starts should nearly match 10,000, the record set in 2004.

CMHC expects the vacancy rate in Montreal to remain stable at about 2.5%
as immigration and employment increase in the city.

In fact, Montreal is expecting 40,000 new international immigrants during
2011, according to the Conference Board of Canada.

New immigrants bolster business for cash-flow investors because they
typically rent

This Senneville listing sold in 42 days – with a little help from home stager Jane Guest of GentleMove. Jane has shared these “before” and “after” photos with us, and we would like to pass them on to you!

GentleMove at 37 Muir Park Circle

Have you been wondering how best to take advantage of these all-time lows in mortgage interest rates? Lesley Wright can help!

She will be presenting 2 first-time home buyer’s seminars in early November, and all are welcome!

Both seminars will be in English only and will cover the buying process from A to Z.

Dates are Thursday. November 4th and Tuesday, November 9th, 2010, from 6:30 to 8:30PM. Both seminars will be held at the Bank of Montreal branch at 1205 Ste-Catherine O. (corner Drummond).

Call (514) 808-3661 to reserve your place! Refreshments will be served.

Are you interested in historical buildings in Westmount? Tomorrow night, the Westmount Historical Association is hosting a lecture on the Hurtubise farmhouse, at the corner of Victoria and Cote-St-Antoine Road, which dates back to 1739.  Titled, “The Hurtubise Family House: Its Place in our Community”, the lecture will feature Jacques Archambault, general manager of the Canadian Heritage of Québec, which currently owns the property. Topics covered will include the history of the building, talk about the house’s current condition, and plans for its restoration.