April 2006

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  Mortgages and Being

Self-Employed...

Who Qualifies

Housing Affordability...it just got easier!

*Important: CMHC and GENWORTH (formerly GE) Mortgage Insurers offer more...

Again, I opted out of the "How to Spot a Grow-Op" article as we received some very important information with regards to CMHC and GENWORTH mortgage insurance.  I have decided that I will forward the Grow-Op article directly to your inbox at your request only.

As some of you may or not be aware, CMHC and GENWORTH have extended their amortization periods.  Traditionally, the amortization for a mortgage in Canada is 25 years or less.  CMHC created an option to consumers that allow a 30 year amortization as a "pilot project" for the next 6 months.  GENWORTH created the option for a 30 or 35 year amortization period.  What does this mean to you?  Maybe nothing.  But on the other hand, what about those of you who were declined mortgage financing because of having too big of debt to service the mortgage?  Maybe you had too much "outgoing" and not enough "incoming".  Or the mortgage payment was too big for you to accommodate each month?  Well, this article may just be what you need to read...

We all know that with the Canadian economy firing on all cylinders, and housing affordability is decreasing.  House prices are on the rise in most major cities.  Interest rates have leveled out (for the time being), but may rise.  Now we have expensive homes and rising rates.

Affordability just got easier with these new programs - let's look at  an example of what this exactly means to you the consumer:

As you can see, you are applicable to surcharge premiums to secure these amortizations, but the difference in monthly payments is considerable.  It just may be what you're looking for.  The purpose of the example is to show you that the difference in monthly payments may be enough of a "buffer" for you to fit into an affordability zone.  Bring your payments down, and increase your chances of qualifying - OR, simply increase your purchasing power!

What's the downside to all of this you ask?  Simply put, you are paying interest on a mortgage for that much longer.  Yes, it can add up over time - but I'm all for the powers and opportunity in having ownership.  I believe that with these new products from the two mortgage insurers, the floodgates will open for thousands of Canadians - creating an opportunity for home ownership for many that otherwise would still be paying "someone else's" mortgage by paying rent, or refinancing to ease your debt obligations each month.

A lot of the mortgage calculators on the internet do not have an option to pick a different amortization.  So let us know if you want us to run the numbers - we look forward to hearing from you...

Sincerely,

DAN MASS, AMP Broker/Agent

Canada First Mortgage

direct: 403.294.0033  cell: 403.710.1505 fax: 1-866-902-4910
email: dan@canadafirstmortgage.com

website: www.canadafirstmortgage.com

Box 32 Site 15 RR9 Calgary, Alberta, Canada  T2J 5G5
242058 Whitepost Lane Calgary, AB