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
