Home sales in Canada appear to have successfully pulled out of the dive they went into back in July of last year. That was when the federal government tightened mortgage rules, reducing the maximum amortization period to 25 years. The January figures from the Canadian Real Estate Association show sales edged higher compared to December, increasing 1.3% in this traditionally slow sales period. The association’s numbers show half of the country’s local markets experienced increases, including Greater Toronto and Greater Vancouver. Toronto rose 5.6% month-over-month and the battered Vancouver market saw a 4.7% m/m improvement.

When it comes to insured mortgage lending in Canada, 25 is the new 30. Additionally, the maximum a homeowner can borrower against their property is 80% as opposed to 85%. It is interesting to consider that as of 2007 homeowners were able to obtain 40-year amortization. However, Flaherty has cut the maximum amortization down twice since 2008. One could assume that Flaherty is concerned that low borrowing costs could fuel a housing bubble. Shorter amortizations influence an individual’s ability to qualify for a higher mortgage because the payments are more.

As per CBC, Ottawa has announced that the new maximum for insured mortgages in Canada will be 25 years.

It appears Canadians are more responsible borrowers than some at the federal level would have us believe. A couple of recent reports indicate the stereo-type of the fiscally conservative and responsible Canuck still has legs.

We are growing! I’m pleased to announce that I have expanded my mortgage service into the Wood Buffalo and Fort McMurray area. I have been fortunate to work with many kind clients in this area, and look forward to continued presence in Fort McMurray. As a mortgage broker serving Fort McMurray, I am a licensed and regulated professional with direct underwriting relationships to both lenders and my clients.