New Changes in CMHC - What Should Home Owners Expect?
If rumors are to be believed, the Canada mortgage market is yet to undergo another major change in the coming few months. Financial budgets all over the world are seeing a major change, and though the Canada housing market appears stable for now, some new changes may be in store for existing home owners and new home buyers.
What exactly will be the kind of changes that Canada mortgage owners should expect? And what can one do to plan for these changes and maintain a strong financial footing in the future? Keep reading to find out.
More Strict Regulations are Underway
In order to cut down on the level of risks involved with drawing out a Canada mortgage, CMHC introduced a new set of rules back in June 2012 to make the mortgage plans stricter. These included the decrease of amortization to 25 years, and new rules for refinancing the mortgage amongst some others. All these rules were put in place to make sure that people did not over splurge just looking at a low mortgage rate and instead chose a plan which they could afford in the coming few years.
The federal government is all for making the rules even stricter to ensure that the Canadian housing market does not see a meltdown like the US market in the future. Risk management is perhaps the main concern at the moment – the new set of rules will be analytically designed to make sure that people choose mortgage rates and plans that they can ultimately afford in the long run.
Changes in the CMHC Administration
It is not only the rules and regulations in the policies that are set to see a revamp in the coming years. The CMHC administration has also undergone a change and the new management is all set to regulate the financial scene with a broad new outlook.
Though the prospect of making mortgages more affordable and feasible for tax payers definitely has its perks, the leniency may also make way for a stark rise in debt for a lot of Canadians. A stricter set of rules and regulations may sound to be unwelcome in the short term, but the long term advantages overshadow the negativities if you look at the bigger picture.
In order to make your future secure and reduce any lending risks in the future, it is always a smart idea to start planning and saving for the future. And yes, it is never too early or too late to start! The sooner you start thinking about securing your Canada mortgage and regulating your monthly expenses, the easier it will be for you to get rid of the debt burdening your shoulders!
Most experts advise new and existing homeowners to manage their budget effectively and maintain a good credit score to avoid any problems in the future. As long as you plan, save and spend within a budget, the Canada mortgage market will continue to be an affordable and attractive niche for you! Best of luck!