CHANGES TO MORTGAGE RULES

 The government recently announced three loan financing changes designed to address concerns about increasing levels of household debt. Here is a link to the government announcement  http://www.fin.gc.ca/n11/11-003-eng.asphere.

First, the government will reduce the maximum mortgage amortization period from 35 to 30 years. Second, the maximum amount of the value of a home that can be re-financed will drop from 90 per cent to 85 per cent. And finally, government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit.

It is important to note, the government did not increase the minimum downpayment, which was under consideration.

 

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