Ottawa just announced new mortgage guidelines for Canadian lenders today which Jim Flaherty says are designed to curb household debt. There are three main changes announced:
- maximum LTV on a refinance is now 85%, down from the previous 90% max.
- maximum amortization is now 30 years, down from the 35 year max established in Oct. 2008
- and finally, HELOCs (Home Equity Lines of Credit) are no longer an eligible insured product. The financial institution can no longer insure these products.
Overall, these changes were expected. The changes will take affect on March 18th, 2011. Take advantage of the old guidelines while they still exist.
Please see attached link http://www.cbc.ca/money/story/2011/01/17/flaherty-mortgage-changes.html
For buyers pre-approved or on the fence for purchasing, this is the time to act! If qualifying based on 35 years is what is required to keep the payments at a comfortable level, act now before the amortization period is reduced.
This information was sent to me by Susan Lackie- TD Mobile Specialists in Saint John New Brunswick.
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