Monday, 25 November 2013

"One casualty of new restrictions could be 30-year mortgages"

"Since 2008, regulators have been trying to contain housing risk by piling on new mortgage rules, and bringing back some old ones. So far, the housing market has yet to crack under the weight of those policies.
In fact, home prices just keep reaching record highs. And each month they do, policy makers get more and more nervous about overextended borrowers.
In 2014, we’re virtually guaranteed to see new mortgage restrictions. One casualty of those new rules could be the 30-year amortization.
“We have noticed that there has been a shift in the marketplace to offer more 30-year amortizations,” chief banking regulator Julie Dickson said Monday at the mortgage industry's annual conference in Toronto. “About half” of new borrowers with down payments of 20 per cent or more are choosing 30-year amortizations, she added."

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