A number of clients have been asking me what are the new Mortgage Rule Changes
Here is the information:
The Honourable Jim Flaherty, Minister of Finance, announced four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 percent:
- Reduce the maximum amortization period to 25 years from 30 years.
- Lower the maximum amount Canadians can borrow when refinancing to 80 percent from 85 percent of the value of their home
- Fix the maximum gross debt service ratio at 39 percent and the maximum total debt service ratio at 44 percent.
- Limit the availability of government -backed insured mortgages to homes with a purchase price of less than $1 million.
The new rules took effect on July 9, 2012. -- from the TREB
Joy Clarke, Sale Representative
905 471 2121
647 205 8842