New mortgage rules offer added protection while leaving low-rate options open to homebuyers in central Ontario, GTA and Niagara

ST. CATHARINES  – New mortgage rules announced by federal finance minister Jim Flaherty this morning are good for both homebuyers and the local housing market, according to Meridian Credit Union Vice President Dave Roberts.

"Home buyers can still get a low variable rate mortgage, but because they have to qualify for a five-year fixed rate, they will be less likely to get in over their heads. It’s good for both consumers and the housing market," Roberts, Meridian Vice President, Marketing, said.

Low, variable rate mortgages are highly popular with homebuyers who have arranged mortgages through Meridian, according to Roberts.

"We are offering a variable rate mortgage of 1.99 per cent, which is the lowest posted rate on the market. The new rules will allow our customers to continue to take advantage of very low rates like this while ensuring that they can afford their payments when mortgage rates rise," Roberts said.
Meridian, Ontario’s largest credit union with 220,000 Members, has 43 branches across central Ontario, the Greater Toronto Area and Niagara including Barrie, Whitby/Ajax, St. Catharines, Toronto and Niagara Falls.

While house prices have not increased in communities in central Ontario and Niagara have not increased at the same rate as Toronto and the GTA, Roberts said affordability in these communities is an issue because of the lingering impact of the recession on jobs.

Even before the introduction of the new rules announced this morning, Roberts said Meridian mortgage specialists in the branches were advising homebuyers on how to ensure they afford their home when rates rise. Roberts said Meridian also monitors mortgage rates and will advise mortgage holders when rates appear set to rise so they can lock in at lower rates on a fixed term.

"We want to help people buy a house, because we think home ownership is important. We also want to make sure that people have peace of mind because they know they will have a house they can afford," Roberts said.

For more information contact:

Scott Windsor
Vice President — Corporate Communications
Meridian Credit Union
416-597-4444 ext. 2668
scott.windsor@meridiancu.ca

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