New Mortgage Guidelines

Our in-house mortgage broker just handled me the new mortgage guidelines as announced by Finance Minister  Jim Flaherty.  Three main changes are:

  • maximum loan to value on a refinance is now 85%, down from 90%
  • maximum amortization rate is now 30 years, down from 35 years
  • Home Equity Line of Credit are no longer an eligible insured product and will not be offered

So these changes are pretty minor and actually make good sense.  I don't see this affecting our market here in south-east NB at all.  Down payments for the purchase of a single family home (5%) hasn't changed.  There have been increases in the down payment for invesment properties and you need to check with your financial instution to check these out.  Our mortgage broker, Audrie Elderkin - Centum A&E Mortgaging Inc - would be happy to answer all your questions.  She is available at 866-8585 anytime. 


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