Ottawa announced new changes yesterday morning to the rules for government-backed mortgages. These new measures will come into affect July 9, 2012, leaving little time for Buyers and those about to re-finance to take advantage of the current regulations.
The changes include:
1) A reduction in the maximum amortization period from 30 years to 25 years.
2) Lowering the ammount of equity you can take out of your house on a refinance by changing the maximum Loan to Value ratio from 85% to 80%
3) The maximum gross debt service ration will be 39% and total debt service will be 44%
4) The governement will no longer back mortgages on homes with a purchase price over $1 million.
To view the release click here