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.