Flaherty tightens mortgage rules

The changes, as reported by the National Post, emerged as worries escalate among Bay Street leaders and the Bank Of Canada about the record levels of household indebtedness and how conditions could deteriorate unless pre-emptive action was taken.

The new leading rules changes on insured mortgages are:

1-Maximum amortization changed to 30 yrs from 35 years (effective Mar 18)

2-Maximum advance on refinancing your home is reduced from 90% to 85% (effective Mar 18

3-Government will no longer insure lines of credit, so that reduces HELOCs (Home Equity Lines of Credit) to 80% (conventional mortgage) -(effective Apr 18)

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Cheryl Kopko

Cheryl Kopko

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CENTURY 21 Miller Real Estate Ltd., Brokerage*
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