Changes to the Standards Governing Government-Backed Insured Mortgages


This morning, the Minister of Finance announced changes to the standards governing government-backed insured mortgages:
  • the maximum amortization period was reduced from 30 years to 25 years;
  • the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from 85 per cent of the value of their homes;
  • the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio at 44 per cent; and
  • the availability of government-backed insured mortgages was limited to homes with a purchase price of less than $1 million.
CREA has continually stressed the need to avoid changing the minimum down payment. Today’s announcement confirms Canadians will continue to be able to purchase a home with five percent down.

The changes announced today will come into effect on July 9, 2012. Details of the announcement can be found
Dan Payerl

Dan Payerl

Broker of Record
CENTURY 21 Granite Properties Ltd., Brokerage*
Contact Me