6th Jul, 2012

Changes to Mortgage Regulations

Recent statistics from the Canadian Real Estate Association indicate that the national housing market remains balanced.

The following changes will come into effect July 9th, 2012:

-The maximum amortization period was reduced from 30 years to 25 years

-The maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80% from 85% of the value of their homes

-The maximum gross debt service ratio was fixed at 39% and the maximum total debt service ratio at 44%

-The availability of government-backed insured mortgages was limited to homes with a purchase price of less than $1 million

Canadians will continue to be able to purchase a home with 5% down.

Responses

[…] rates remain ultra-low. Despite low interest rates, in July 2012, the Canadian government tightened mortgage lending rules to make it harder for home buyers to accumulate too much debt, thus slowing down the market. This […]

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