Canadian Lending Rules Are Changing

6a00e54fcc27ac883400e55395b0f28833-800wiHave you heard?

The Canadian government has decided to limit access to some of the newer mortgage programs that were available to home buyers.

You can take a look at the article here

Perhaps the best part of the article are the comments at the bottom.

It never ceases to amaze me how negative the majority of people I speak with are (just like the comments in the article).  No matter what the news is, they focus on the negative.

I applaud Sunil (check the article comments) for using a 40 year mortgage to his benefit.  It is people like him that finish ahead of the crowd.

Now, on to the mortgage changes......

To sum it up there are two major changes that have been made.  The government will not allow CMHC to insure mortgages amortized over 40 years, or mortgages with 0% used as a downpayment, any longer.

So what does this mean to you and me?

It can depend on a lot of things.  There are advantages and disadvantages depending on your what you are using your mortgage for.

The point of view differs depending on whether you are a homebuyer or investor as well.

There is one constant and that is the anticipated effect these changes will have on the real estate market.

Chances are anyone that can only qualify for a home with these programs may be anxious to get into the market before they come into place in October which could cause a slight bump.

Then, with less people being able to qualify for homes because of the changes there is a potential that this will contribute to a bit of slowing in the market.


This will not cause a market crash.  Don't fall into the trap of listening to the negativity around you.

In fact in you are an investor this may be some welcome news, as your rental pool is about to grow with qualified candidates.

I look at this as good news for my current and future investments.  I think this only makes the investment market stronger.

As an investor it is extremely important to get the 'real' story and look behind the headlines and make yoursefl more educated.  How does the news relate to you specifically? in your specific investment and market?  That is how success is bred!

Unfortunately my day is completely booked today so I don't have much time to elaborate.  But this is something we will be looking at in the current issue of our Income For Life newsletter that all our private coaching clients receive.

If you are an investor in Ontario you should check us out.  Our application form is online at we work hand in hand with all our members to ensure their success.

Enjoy the weekend!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

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