Canadian Mortgage rules are changing...again

The finance minister announced changes to mortgage lending guidelines.   The following changes were outlined:

·         Maximum amortization reduced to 30 years (from a current maximum of 35 years).  This is a significant change for many borrowers who may need the longer amortization to qualify for the mortgage. 

·         Maximum refinance allowed is 85% of property value (currently the maximum is 90%);

·         Home Equity Lines of Credit (HELoCs) will no longer be backed by mortgage insurance.

The effective date is March 18, 2011 for the amortization & refinance limits, and the HELoC change is effective April 18 2011.

It's important to note that lenders can make these changes before the effective dates; we expect to hear more from the lenders this week.   

There were several reports late last week indicating revisions for condo purchases; however, no announcement was made concerning these properties.

See the attached link for more...  http://www.financialpost.com/personal-finance/Flaherty+tightens+mortgage+rules/4119505/story.html

If you need to speak to an experienced mortgage broker about any real estate financing needs, feel free to get in touch. I would love to help.