The federal government did it again. Changes to the mortgage rules were announced June 20th. There are 4 major changes:
1) Amortizations have been reduced to 25 years maximum from 30.
2) Refinancing (not purchasing) has been reduced to 80% loan to value from 85%.
3) Properties purchased at over $1,000,000 now no longer qualify for high ratio mortgage insurance.
4) GDS ( Gross Debt Service or house debt) and TDS ( Total Debt Service or all debts) have been increased to 39% and 44% from 32% and 40%.
For more information on these changes, see the related story from the Globe and Mail or call me if you have any questions.