In my previous posting, I outlined the recent changes announced by the Federal Government regarding the rules for government backed insured mortgages. These changes are now in effect, and became effective July 9, 2012.
The government brought in these changes because they are very concerned with the amount of debt that Canadians are carrying. In this posting, I would like to provide insight to what some of the changes mean and how they will affect all of us as Canadians.
The new rules will reduce the maximum amortization period of a mortgage from 30 years to 25 years. In 2011 the government reduced the maximum amortization from 35 years to 30 years. This means that for many of us, monthly mortgage payments are going to increase. For those Canadians that had 35 or 30 year amortization periods, they are going to face a major cash crunch when it comes time to renew their mortgages. The best way to ensure that you can manage the higher payments is to reduce your credit card and other debts right now, before you hit that debt wall in the near future.
A Consumer Proposal is a way to reduce your unsecured debt to a monthly, affordable, interest free payment. In most cases the debt is reduced by as much as 80%. At A.Farber and Partners, we can provide you with a no cost, no obligation review of your financial situation, in in which you’ll learn about all the debt relief options that are avaialble to you.
Let’s talk today about how you can dodge that debt bullet and get your financial house in order, so you can keep your physical home and enjoy it for many years to come!
Other articles related to mortgage debt:
- How the new Canadian mortgage rules are going to impact us – part 1 of 4
- How the new Canadian mortgage rules are going to impact us – part 2 of 4
- How the new Canadian mortgage rules are going to impact us – part 3 of 4
- How the new Canadian mortgage rules are going to impact us – part 4 of 4