30-Year Insured Mortgages Category: Education and Learning, First Time Buyer, Home Purchase, 30-Year Insured Mortgages The government just released guidelines for 30-year insured amortizations. These extended repayment periods are earmarked for first-time purchasers of newly-built residences and kick off this August. To get a 30-year insured amortization: 1. At least one of the borrowers on the application must be a first-time homebuyer, meaning they meet one of the following criteria: A) The borrower has never purchased a home before; B) In the last 4 years, the borrower has not had a principal residence that either they or their current spouse or common-law partner owned; or, C) The borrower recently experienced the breakdown of a marriage or common-law partnership. 2. The new home must not have been previously occupied for residential purposes. 3. The mortgage must be high-ratio insured (less than 20% down) 4. This measure applies only to mortgage insurance applications that lenders submit to mortgage insurers “on or after August 1, 2024.” *IE, funding must be well after August 1, because time needs to be taken to underwrite the file. So… how much will this insured policy truly incentivize new construction, given the typical 20%+ deposit requirements of builders? I suspect not so much. Continue Reading: Read Article Current Interest Rates Category: First Time Buyer, Summary: Fixed interest rates have been decreasing steadily over the past two months. At the same time, the variable rates have increased (the discounts off of the prime rate have decreased). At this time, the vast majority of clients are going with the 3-year fixed rate. The changes in rates above in (mostly) green show […] Read Article Read Article May Jobs Report / Probable July Rate Cut Category: Education and Learning,First Time Buyer,Home Purchase, May Jobs Report / Probable July Rate Cut In the first major data release since the Bank of Canada cut interest rates last Wednesday, Statistics Canada Labour Force Survey for May showed a marked slowdown from the April surge. Employment was little changed and the employment rate fell 0.1 percentage points to 61.3%, the seventh […] Read Article