Here is info and clarity on the changes announced Thursday by Finance Minister Jim Flaherty:
1. Maximum amortization reduced to 25 years from 30 - lowers house budget / raises monthly payments
2. Refinancing reduced to 80% from 85 % - lowers the amount of home equity that can be removed for other purposes
3. Purchases over $1 million no longer eligible for mortgage insurance - buyers have to put 20 % down on these homes
4. GDS and TDS set at 39% and 44% - may lower house budget as well
These new rules take effect July 9, 2012. A buyer with an offer in on a property by that date, will receive the old rules. Possession can actually occur later, there just needs to be a deal by that date.