Posted on: 17-01-11 13:53:47
So does this 85% rule is only for refinaceing. Any first time buyer can still get mortage of 90% of value of house?
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infocan
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Originally posted by infocan
So does this 85% rule is only for refinaceing. Any first time buyer can still get mortage of 90% of value of house?
First time home buyer can still buy at 5% down. The only difference is going to be in the amortization term which is going to be reduced from 35 years to 30 years.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Who created 35 years monster in the first place?
I doubt it would make any difference. Banks are smarter, they would throw in lower interest rate to maintain the housing loan portfolio at same level.
He has done to reduce government risk exposure on these mortgages.
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Originally posted by ashedfc
Quote:
Originally posted by Desi # 1
Who created 35 years monster in the first place?
I doubt it would make any difference. Banks are smarter, they would throw in lower interest rate to maintain the housing loan portfolio level at same level.
If the banks were smarter, they would have prevented the collapse of 2008. its just that Canadian banks were lucky, by joining late into the global sub-prime mortgage party. In US, now the Option ARM, & Alt A is causing havoc in US housing (the next leg down currently unfolding).
Who lost in 2007 subprime market? Is it banks or us? Lehman declared bankruptcy - who lost ?
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by infocan
So does this 85% rule is only for refinaceing. Any first time buyer can still get mortage of 90% of value of house?
First time home buyer can still buy at 5% down. The only difference is going to be in the amortization term which is going to be reduced from 35 years to 30 years.
Thanks for clarifying. So this 35 to 30 rule only applies to those who have less than 20% downpayment. Any one with 20%+ downpayment can still carry on with 35 amortization term. Isn't it
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infocan
Quote:
Originally posted by infocan
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by infocan
So does this 85% rule is only for refinaceing. Any first time buyer can still get mortage of 90% of value of house?
First time home buyer can still buy at 5% down. The only difference is going to be in the amortization term which is going to be reduced from 35 years to 30 years.
Thanks for clarifying. So this 35 to 30 rule only applies to those who have less than 20% downpayment. Any one with 20%+ downpayment can still carry on with 35 amortization term. Isn't it
Well, the change of rules are for the insured mortgages. Now for conventional mortgages it depends on banks if they want to give 35 year amortization or not. So, if you are putting 20% or more down payment the bank may or may not offer amortization for over 30 years. So far, the banks have not given any indication of reducing amortization term from 35 years to 30 years.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
