We just wanted to take a couple minutes to inform you of the new mortgage rule changes that come into play on March 18th, 2011.
The Government of Canada has issued New Mortgage Rules for all lenders to follow in order for client’s to receive government supported Mortgage Insurance, which is mandatory for all High Ratio Mortgages.
These Rules are:
Mortgage amortization periods will be reduced from 35 years to 30 years.
The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.
The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit. (Effective April 18th, 2011)
What does this mean for you?
Shorter Amortization periods can help you pay off your home faster!
Dropping the refinance maximum will prevent Canadians from slipping into unmanageable debt!
They will help improve the financial situation of your home!