Finance Minister Jim Flaherty today announced some changes to mortgage rules that will come into force on March 18, 2011.
- The maximum amortization period is now 30 years(down from 35 years) for government-backed insured mortgages, when the downpayment is less than 20 percent.
- The maximum amount that can be borrowed when refinancing a mortgage is now 85 percent the value of the home, down from 90 percent.
- The government will no longer provide insurance backing for home equity lines of credit.
Exception will be allowed after these new change come into force, if necessary, to satisfy a home purchase or sale and financing agreement arranged before March 18, 2011.
The minimum down payment remains at 5 percent, and the requirement that just 50 percent of monthly condo fees be used in debt ratio calculations will continue.
If you have any questions about the changes please do not hesitate to contact me directly.