Mortgage lenders in B.C. are seeing an uptick in applications as residential buyers attempt to get loan approvals before new mortgage rules coming into effect March 18, according to Canadian mortgage professionals.
As of March 18, 35-year amortizations will disappear on high-ratio insured mortgages. At the same time, the limit on insured refinances will drop to 85 per cent of loan-to-value ratio, from 90 per cent. The deadline to have a mortgage qualified under the old regulations is March 17.
"Thus far, we've heard multiple lenders reporting above-normal mortgage volumes. These elevated volumes will likely continue for the next seven weeks, culminating in an especially busy stretch from March 14 to 17," said the report from Canadian Mortgage Trends.
The new rules do not apply to the majority of buyers who take a traditional 25-year amortization or do not require Canada Mortgage and Housing Corp.-insured mortgages.
Banking officials estimate that the amortization reduction will impact at least 2,000 home buyers this year in B.C.
from Western Investor, March 2011
