2011 New Mortgage Rules

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Three new federal rules – changes to current practices – concerning mortgages were announced by Finance Minister, Jim Flaherty, today as a response to the rising consumer debt in Canada.

What are they? 

1. The Amortization Period has been reduced to a maximum of 30 years from 35 years for insured mortgages, with more than an 80% loan-to-value-ratio, that are backed by the government.

2. The maximum amount that Canadians can borrow to refinance their mortgages was lowered to 85%, from 90% of the value of their homes.

3. Insurance for lines of credit that are secured by homes, which are backed by the government, will be withdrawn.

About Aaron Joshua Barroso

Marketing at Zoocasa, Brokerage.

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