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CONSUMER Thursday Feb A The federal government has unveiled theyll have a major impact New mortgage rules posturing expert says New mortgage rules unveiled by the federal government Tuesday may be a good idea but they wont have any major effect on the mar ket local experts say Its just posturing MonsterMortgagecas Dave Currie said of the moves announced by Finance Minister Jim Flaherty If there is a housing bubble and dont think there is at least they took steps Mr Currie said Theyre marketing that they did some thing While making it clear he doesnt think there will be a ousing bubble Mr Flaherty said Ottawa was taking proactive prudent and cautious steps to prevent one usually advise my clients to make sure they can still afford a mortgage even if rates go up per cent Mow much of a difference those steps actu ally make remains to be seen- There are three key changes All borrowers must meet the terms for a fiveyear fixed rate mortgage even when com mining to a shorter term or lower rate The goal is to prevent homebuyers from financial ly squeezing themselves so much that they are unable to make payments if mortgage rates climb from current historic lows Instead of being able to withdraw per cent of your homes value to refinance the mortgage home owners can now only borrow per cent and To discourage speculators a minimum down payment of 20 per cent is required for properties not occupied by their owners Anything less will not qualify for government- backed mortgage insurance Its a great measure Wealth Man agements Tina said of the first proposal which creates more safety for I usually advise my clients to make sure they can still afford a mortgage even if rates go up 3 per cent the Richmond Hillbased certified financial planner said The current difference between the vari able and fixed rates is about per cent so still below her recommended threshold Ms Tehranchian said I think consumers need to build a bigger margin of safety she said also advises clients to pay what they can making payments as if the rates were per cent no matter what the vari able is Mr Currie said That said the governments move is ill- defined he said What for example is the rate for a fiveyear fixed rate Is it your local banks posted rate As for the other two measures both are formalizing restrictions already in place Mr Currie said Neither is bad but neither is changing the game Because of the hot market its still a good idea be curbing speculation Ms said It may be fine to leverage against your equity and buy investment properties when interest rates are low but the key is to not get squeezed when they inevitably rise Low rates create a false sense of security and at the end of the day you need to make sure your budget has room to manoeuvre she said Last years elimination of 40year amorti zations and zerodown payments were more significant moves Mr said pointing to the United States where mortgage payments are tax deductible as a more impactful model Canada could look to You want people to pay down their debt much as possible he said Too many people treat mortgage payments like rent instead of seeing the bigger benefits of home ownership he added The amount that goes back into a home is what keeps the economy going he said The new rules will take effect April Come find out why Pickering College is 1 SCHOOL MATTERS School is the place where children learn develop character make friends and prepare for future endeavours and opportunities Its their community and the experiences they have at school shape them as they grow Thats why it is so important to find the right school for your child somewhere they will feel safe and supported At Pickering College your child will be warmly welcomed into our intimate school community With just students from K to Grade everyone has a and feels a deep sense of belonging Students faculty and live the values that have guided our school since 1842 The result is a community of lifelong learners who are values based academically prepared and socially responsible Thursday February Thursday April 8 1130 L A B O Y I I S CHRISTIAN BAPTIST CHURCH 127- Main Street Newmarket Pastor Keith Dal M in Morning Worship Chinese Ministry Mandarin Cantonese tttmSr Trinity Church Aurora J connect STANDREWS WELCOMES YOU Water SI Sunday February Worship Service at 1000am only Omzh School si Sermon Wednesday February 24 Midweek Lenten Service at Trinity Anglican Church Aurora Victoria St Aurora ON Newmarket people are important 145 Pay Dim BY TBS org INCREDIBLE SAVINGS THROUGHOUT THE STORE IMPURE AT CHARU Reclining 1 2 Months DO NOT PAY Ask about FREE InHomo Design Service COMPARE AT compare at Power Contra 1220 Brant St North of QEW East of Highway East Just East of Woodbine 2657 Dundas at Winston Churchill Progress Avenue Scarborough Town Ctr Bass Pro Mills Drive Mills Shopping Ctr Monday Friday 10m Saturday 930am Sunday 5pm 416 253 0109 0O46 official furniture provider