28 January 2011
• Many lenders now offer covering refinance costs in case they are closing in the next 1-2 months. Please, consult your mortgage broker to get more information on this topic.
• It’s quite possible that insurers, like CMHC, already starting to scrutinize 90% LTV refinance applicants even more than usual.
• During the last year about 30% of new mortgages had 35-year amortizations – the majority of these borrowers were first-time homebuyers.
• According to the statistics, the amortization reduction will affect 20,000 home sales (2011 home sales to reach the level of 420,000 units).
• Because of the amortization period reduction peoples’ maximum affordable purchase price will drop by 6-7%.
• Approximately 10% of borrowers who refinance get a mortgage over 85% LTV.