The Mortgage Rule Changes and Implications 2012.
The biggest change in the mortgage rules is the reduction in maximum amortization from the previous 30 years to 25 years. What does this mean? Simply that mortgage payments just got a bit more expensive for new home buyers. However, more of the payment will go towards the principal and less interest paid over the term of the mortgage.
Reduced loan to value Amount.
For existing home owners looking to tap into their home equity, the maximum loan to value has been decreased from 85% to 80%.