New TDSR ratios

[fumbrunner]

The article below explains the changes to CMHC`s TDSR calculations. Investors should take the time to see how the changes affect them. There is also a few recommendations (and I stress a few) to assist investors in obtaining insured financing going forward.

http://www.canadianmortgagetrends.com/cana...ntal-rules.html

as an fyi, I have a handful of properties, all that cashflow extremely well. My TDSR went from 12% to over 50% with the new calculations. Here`s hoping banks retain their TDSR calculations and do not follow CMHCs lead.

 

[bizaro86]

QUOTE (fumbrunner @ Apr 15 2010, 08:02 AM) Here`s hoping banks retain their TDSR calculations and do not follow CMHCs lead.

It would certainly be good if they did. Our TDSR went from 23% and dropping with every property we bought to 42% and climbing with every property we buy under the new rules.

Michael

 

[LifesMoneyPeople]

QUOTE (fumbrunner @ Apr 15 2010, 10:02 AM) The article below explains the changes to CMHC`s TDSR calculations. Investors should take the time to see how the changes affect them. There is also a few recommendations (and I stress a few) to assist investors in obtaining insured financing going forward.

http://www.canadianmortgagetrends.com/cana...ntal-rules.html

as an fyi, I have a handful of properties, all that cashflow extremely well. My TDSR went from 12% to over 50% with the new calculations. Here`s hoping banks retain their TDSR calculations and do not follow CMHCs lead.

Really good article thanks



Do you think this will increase the number of rental properties on the market because when investors mortgages come due they will have to let go one or two of their properties to meet the new TDSR rules




Do you think in a couple years time we could see them coming back to these guidelines and changing then to be more flexible to not put everyone in the same category