FEDS CHANGE MORTGAGE RULES

 

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.

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Terry Black

Terry Black

Sales Representative
CENTURY 21 Trident Realty Ltd.
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