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.