New Mortgage Rules

Posted by Alex Jens on Wednesday, July 4th, 2012 at 2:03pm.

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.

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