Mortgage & Market News, June 18th, 2012, Edmonton & Calgary

First Foundation’s Best Rates to for the Week:

Term Rates
1 Year 2.89%
2 Year 2.69%
3 Year 3.19%
4 Year 3.29%
5 Year 3.09%
7 Year 3.99%
10 Year 3.89%

ARM / Variable 2.90%
Line of Credit 3.50%

Prime 3.00%
Qualifying Rate 5.24%

Market News

The Toronto stock market plummeted three per cent, closing 350 points lower in its biggest one-day drop since November.

Three separate reports that showed a manufacturing slowdown in three of the world`s largest economies were responsible for tumbling commodity prices that dragged the TSX down today.

The S&P/TSX fell 351.03 points to close at 11,408.32.

Mortgage News

Finance Minister Jim Flaherty announced tougher rules for CMHC insured mortgages Thursday morning. This time Flaherty’s cutting the maximum amortization period for government insured homes to 25 years from the current 30 years, and limiting how much homeowners can borrow on the value of their homes to 80 per cent from 85 per cent.

In addition debt servicing ratios have been tightened and CMHC will no longer be insuring homes worth more than $1 million, meaning buyers will need to put up at least a 20 per cent down payment or seek alternative mortgage default insurance.

The changes go into effect on July 9th – to understand what impact this may have for you as a current or perspective home owner, take a look at our recent blog post, Flaherty Tightens Mortgage Rules Again…What Will This Mean For You?