Mr. Flaherty has announced 3 new rules affecting mortgage regulations?? They are:
1. Mortgage amortization periods will be reduced to 30 years from 35 years. (This is for high ratio mortgages only…those that are insured by CMHC and had a downpayment of less than 20% of purchase price.) Effective March 18, 2011
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2. The maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85% from 90%….effective March 18, 2011.
3. The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit. Effective April 18, 2011.
These changes are meant to continue to protect ourselves from allowing ourselves to take on more debt than is financially safe. It’s all good and it’s why Canada has less than 1% of mortgages in arrears!!