Mortgage Rules Tighten

The Canadian Federal finance minister announced changes today to mortgage insurance rules through CMHC (Canada Mortgage & Housing Corp.). Effective July 9, 2012 insured mortgages will require;

• 25 year amortization period, replacing the 30 year period for government insured mortgages.
• Home equity loans have been tightened. Homeowners can refinance to a maximum of 80% of the home value down from 85%.
• Maximum gross debt ratio (GDR) is now 39% and the total debt ratio (TDR) is 44%
• Government backed mortgages will only be available  for home prices under 1 million dollars.

Ken Priestman

Ken Priestman

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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