Mortgage New Rules

In Canada sales and prices of existings homes soared last year, unlike in the U.S. where housing markets struggled to recover. This recovery boosted by the bank of Canada's near- zero interest rates and the resulting low-cost mortgages.

Canada will implement Mortgage new rules that will benefit the home buyers. Under the new rules it will prevent the kind of problems that caused the U.S. housing market to collapse. I will requires borrowers have the resources to qualify for a five-year fixed rate mortgage. It will also benefits most people to continue to qualify as they do currently for homes they intend to live. Mortgage rates minimum five percent down payment has not change.

Please go to Article:
http://mashtrends.com/02/finance-trends/canada-tightens-mortgage-rules-says-no-bubble-yet/20/

Greater home ownership

The Canadian government has not used public policies like the Community Reinvestment Act. And they provides public funding for low income rental housing.

In a Home Mortgage, interest has never been tax-deductible in Canada. Also paying down your mortgage is a tax free investment and further encourages greater equity accumulation.

The Canadian banking system is much more concentrated with their 5 largest Canadian banks. Holding more than 80 percent of total bank assets. This concentration became an advantage during recent financial crisis.

Banks in Canada create a healthy and sound "pro lender" environment absent of political motivations for outcomes like greater home ownership.

Please go to Article:
http://american.com/archive/2010/february/due-north-canadas-marvelous-mortgage-and-banking-system

Tax Deductible Mortgage!

More than 700,000 home-based business owners might be eligible to deduct a portion of their mortgage interest on their principal residence as an expense as long as you can prove and maintain a direct link between the mortgage you incurred and earning income. You would base the mortgage interest deduction on the square footage of your home office divided by the total square footage of the house.

It is also true that if you incur a mortgage to purchase a rental property, the interest you pay on the mortgage is tax deductible as that rental property is used to earn income.

Generally speaking, mortgage interest is not tax deductible on your principal residence. However if you can prove a direct link between the mortgage and using that part of the house to earn income, then you will be eligible to make that interest deduction.

Consult your accountant or a tax specialist to seek advice.

Please go to Article: How your Mortgage Can Lower Your Tax Bill