Mortgage Rules Changes

The Federal Government announced this morning four new clampdowns on insured mortgages that will quickly come into effect on Monday, July 9th, 2012.

These changes include:

  • Reducing the maximum amortization period to 25 years from 30 years
  • Reducing the maximum amount of equity homeowners can take out of their homes when refinancing to 80% from the current 85%
  • Limiting the availability of government-backed mortgages to homes with a purchase price of less than $1 million
  • Fixing the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44%

The first two changes will have the biggest impact on Canadian borrowers.  If you'd like to review your options or if you have any questions, please give Andrew Roach , from Dominion Lending Centres, a call at 289-878-4500.

Lisa Roach

Lisa Roach

REALTORĀ®
CENTURY 21 Future Realty Inc., Brokerage*
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