New Mortgage Rules
The Federal Government has made changes to Mortgage Financing rules for Government insured mortgages. Amortization periods have been reduced to a maximum of 30 years from 35. Homeowners will now only be able to refinance their homes to a maximum of 85% of the value of their homes. Down from the previous 90%. Home Equity Lines of Credit will no longer be back by the Government. The concerns being that Canadians are carrying much higher debt loads with interest rates being so low. With interest rates seen to be going up in the future this would make carrying this much debt load at higher rates very difficult for many Canadians and would result in more defaults. Speculation the minimum down payment would go up to 10% from 5% and Condo buyers would have to qualify with 100% of the condo fee being included didn't come to fruition.
If you have any questions don't hesitate to contact me. Don Merrifield Jr.
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