This morning, the Federal Finance Minister announced further changes to Canada's mortgage insurance rules. Four measures were announced that take effect as of July 9th, 2012:
1. Amortizations reduced to 25 years
2. Refinancing limited to 80%
3. Properties purchased at over $1 million no longer eligible for mortgage insurance
4. GDS and TDS set at 39% and 44%
What does this mean?
This rules are fully in force beginning July 9, 2012. However, to take advantage of current rules, you must have an offer fully in force prior to July 9, 2012. This offer can have conditions oustanding, but it must be written prior to July 9, 2012.
So, if you were thinking of buying, now would be the time to pull the trigger, before these rules take effect.
If you have any questions, please let me know