Timeline For New Insured Mortgage Rules

June 26th, 2012

MAJOR CHANGES COMING!

June 21st, 2012

MAJOR CHANGES ANNOUNCED IN THE MORTGAGE INDUSTRY TODAY! Once again, the government has tightened their lending policies. As of July 9, 2012, here are the major changes that will be taking place on all insured mortgages (mortgages with less than 20% down):

1) Maximum amortization period is REDUCED from 30 years to 25 years.
2) Maximum refinancing amount is REDUCED from 85% LTV (loan to value) to 80%.
3) Maximum GDS REDUCED from 44% to 39%.
4) Maximum purchase price is $1,000,000 (you need to put 20% down to purchase a million dollar home).

http://www.theglobeandmail.com/news/national/ottawa-tightening-mortgage-rules-no-more-30-year-amortizations/article4358876/?cmpid=rss1

Toronto Real Estate Up In May!

June 11th, 2012

Greater Toronto REALTORS® reported 10,850 transactions through the TorontoMLS system in May 2012; an 11 per cent increase over the 9,766 sales in May 2011. Sales growth was strongest in the ‘905’ regions surrounding the City of Toronto.

“Sales growth in the ‘905’ area code was stronger than growth in the City of Toronto across all major home types. While lower average prices are certainly one factor that has contributed to this trend, recent polling also suggests that the City of Toronto’s land transfer tax has also prompted many households to look outside of the City for their ownership housing needs,” said Toronto Real Estate Board (TREB) President Richard Silver.

New listings were up substantially on a year-over-year basis in May – rising by more than 20 per cent to 19,177.

The average price for May 2012 sales was $516,787, representing an annual increase of 6.5 per cent compared to $485,362 in May 2011. Price growth continued to be driven by the low-rise market segment.

“Strong competition between buyers seeking to purchase low-rise home types drove strong price growth in May. However, if new listings continue to grow at the pace they did in May for the remainder of 2012, the annual rate of price growth should begin to moderate on a sustained basis,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Via TREB (http://communications3.torontomls.net/statistics/mwatch/index.htm).

Are We Close To Abolishing the Toronto Land Transfer Tax???

June 2nd, 2012

TORONTO, June 1, 2012 – Ahead of an important announcement to be made on Monday June 4th, by the Toronto Real Estate Board (TREB), regarding efforts on the City’s Land Transfer Tax, Toronto’s REALTORS® are releasing results of public opinion polling that shows, among other results, a strong majority of Torontonians, 66 percent, support plans to repeal the Toronto Land Transfer Tax.

The detailed polling results were formally presented by Mike Colledge, President, Canadian Public Affairs for Ipsos Reid at a TREB luncheon attended by various elected officials from all levels of government, shelter charity representatives, real estate industry representatives, and TREB Members.

“REALTORS® know that the Toronto Land Transfer Tax is having an impact on our City, and these poll results show that the public understands this too,” said Richard Silver, President of TREB. “The Toronto Land Transfer Tax is impacting real people and real jobs and it’s holding our City back. It’s time for action. TREB is looking forward to making an important announcement on this, next Monday.”

Among other key highlights of the poll were:

*77 percent of Torontonians who recently purchased a home in Toronto feel that they received little or no added value in City services for the amount of Land Transfer Tax paid to the City;

*A third of first-time buyers indicated that they had to pay some Land Transfer Tax to the City, notwithstanding City rebates;

*In a list of issues facing municipalities, housing affordability was most often ranked as the most important by Torontonians, ahead of traffic congestion;

*78 percent of Torontonians believe that property taxes are more transparent than the Land Transfer Tax and make it easier for the public to hold City Council accountable for their spending decisions;

*Public opposition to the land transfer tax remains strong even if the tax were to be dedicated for spending on transit and infrastructure, with more than two-thirds, 68 per cent, opposed to this idea;

*61 percent of Torontonians believe that City spending on programs and services is efficient and cost-effective. This is up from 45 percent a year ago, indicating a significant improvement.

This poll is the third conducted for TREB by Ipsos Reid in the last year.

“Public opinion on the Toronto Land Transfer Tax has remained consistent through all the ups and downs of the economy and City Hall debates. Clearly, the public’s opposition to this tax is strong,” said Von Palmer, TREB’s Chief Government and Public Affairs Officer. “We understand the importance of quality services to building a great city, but we believe that those services should be funded fairly and reliably.”

TREB will be following-up on the release of this polling data with the release of additional results and an important announcement on efforts regarding the Toronto Land Transfer Tax, on Monday June 4th.

The poll was conducted by Ipsos Reid, from April 30 to May 7, 2012, with a sample of 1,257 adults, of which 653 live in the City of Toronto, and 604 live in the surrounding 905 region, with a margin of error of +/-2.8 percentage points, 19 times out of 20. Questions were posed to only Toronto residents, or only 905 region residents, or both, as appropriate, depending on the question.

Article from TREB
Posted by http://firsttorontomortgage.com