Changes to mortgage rules announced by the federal government this week will have little effect on the housing market, local experts say.
On January 17th, Minister of Finance Jim Flaherty announced three new changes to mortgage rates.
The first change will see the maximum amortization period - the length of time it will take to pay off the mortgage - reduced to 30 years from 35 years.
The change will only apply to mortgages approved after March 18th, 2011.
The Department of Finance chose to leave the minimum down payment at five percent of the home's value.
The Bank of Canada says interest rates will stay the same for some time yet.
The government also announced two changes to refinancing and home equity lines of credit on Monday.
Now Canadians can borrow up to 85 percent of the value of their home when refinancing a mortgage, down from 90 percent.
Call us today to talk about how the new rules will affect you.
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