The government has again changed three loan financing designed to address concerns about the increasing levels of household debt!!!
1. Reduce the maximum mortgage amortization period from 35 to 30 years.
2. The maximum amount of the value of a home that can be re-financed will drop from 90% to 85%
3. Government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit.
These 3 measures are designed to ensure homebuyers invest responsibly in home ownership and don't risk their financial security by buying too much home for their income or the country's economic circumstance. They will come into effect March 18, 2011.