In February, the federal government introduced new measures to strengthen the financing of housing. The new requirements for government backed mortgage loans are insured:

• All borrowers must meet the standards for a fixed rate mortgage for five years, even if they choose a mortgage with a lower interest rate and shorter term.

• The maximum amount Canadians can withdraw to refinance their mortgages was lowered to 90 percent to 95 percent of the value of their homes.

• A minimum deposit of 20 percent is required for mortgage insurance backed by the government on properties not occupied by the owner bought for speculative purposes.

“Although we do not believe that Canada is facing a housing bubble, we fully support the actions of the minister,” said Jane Yuen, Senior Mortgage, Bank of Montreal. “BMO mortgage specialists to help you stress test your budget by using a mortgage payment based on an interest rate higher. ”

Yuen recommends these tips for owners and future owners:

• Consider a shorter amortization

- The shorter the amortization, less interest you pay.

ª Make greater downpayment

- If you can offer a greater outlay is a great way to help you pay less interest over the life of your mortgage. Either a minimum of 10 per deposit one hundred

• Make sure you can afford signed up for

Stress test – your budget using a mortgage payment based on an interest rate higher.

ª Make pre-payments when you can

- Pay weekly or bi-weekly rather than monthly and take advantage of prepayment.

• Always make sure you put in place for a rainy day

- If you’re at your maximum debt, you can not be well prepared for the roof, which flows along the path

• Think carefully fixed-variable ratio

- Although variable rate mortgages have been a winning strategy in the long term, fixed rate mortgages come with peace of mind of being insulated against rate increases and how much of your mortgage you refunded at the end of your term

www. newscanada. com