The new rules include:
• Reducing mortgage amortization periods from 35 years.
• Cutting the amount of mortgage refinancings to 85 per cent from 90 per cent of home value.
• The government will withdraw insurance backing on lines of credit on secure homes, such as home equity lines of credit.
The proposed regulation comes at the heels of an announcement by the Bank of Canada that the national household debt is at a record high. They also stated that “the ratio of household debt to disposable income has reached 147 per cent.”
A government official told CTV News the rules are designed to push for “responsible lending and borrowing and encouraging people to increase their home equity.” The new measures aim to reduce interest payments to help Canadians’ pay off their mortgages before retiring.
I hope this information has come in handy! For more information go to www.StephenTar.com