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We have seen more regulatory changes to the mortgage financing industry over the past couple of months and pretty much every year for the past four years.  One other change that is in the works is a reduction on the maximum loan to value allowed for Secured Line’s of Credit.  Right now a Secured Line of Credit can go up to 80% of a property value.  This could be cut to 65%.  With generally mortgage refinancing now at 80% (it was 95%  four years ago) regulators are trimming back how much equity a borrower can pull out of their properties.
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The federal budget due March 29 almost certainly will unveil the government’s thinking on the future of the Canadian covered bond market. This may prove strangely important, because covered bonds lie at the heart of one of the most contentious public policy issues in the Canadian financial system.
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Typically sources of down payment have to come from the borrower’s own resources .  These would include:
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It looks like fixed rates may be possibly moving upwards tomorrow or Friday.  This is based on the an increase in yield on the 5 year Government bond.  The 5 year government bond (which leads mortgage fixed rates) sprang up to 1.51% today.  That is a 3 1/2 month high.  If yield hold above 1.50% we could see an increase in mortgage fixed rates.
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Mortgage amortization is the length of time that a mortgage loan is set up for.  In other words this is the maximum amount of time a borrower has to pay out the loan based on the initial mortgage payment set up.   Currently the longest amortization in Canada based on Government rules is 30 years.

Long term mortgage rates for both 7 year and 10 year are now under 4%.  Having a mortgage locked in under 4% for next 7 to 10 years is an amazing option especially on a investment property.

We have all heard the doom and gloom that is surrounding the world economy especially in Real Estate.  Although some parts of Canada have being hit by a negative decline in Real Estate Value Toronto and GTA has continuously performed well.  As a result the equity in ones property has increased.  With current interest rates being as low as they are, now could be an excellent time to tap into that equity take out if needed.  Equity in a property belongs to the owner, it yours and can be used for a number of things
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The Minimum down payment required for a mortgage is 5%.  On rental or investment properties it is 20%.  This is a government law.

Sources for down payment can be banks accounts, investments, Lines of credit (secured against property), Gifted funds.
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The main objective of any mortgage borrower is to pay down there mortgage as soon as possible.  Naturally coming up with the money to do this is not that easy.  Two ways to chip away at your mortgage is to take an accelerated payment frequency and take advantage of the automatic payment increase allowed on your mortgage by your mortgage lender.  Here is an example.
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I hope the kids are not to wired today after all that sugar last night.

When your mortgage is up for renewal you do have options.  Believe it or not nearly 85% of Canadians sign their mortgage renewal letter without actually considering other options for a better rate or product.  When you receive a renewal letter from your lender, the lender (mainly banks) will not offer you the best discount rate.   They are hoping (and in most cases are correct) that you will just sign the renewal letter and send it back to the lender.  The lenders (banks) save allot of money by taken this approach.
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