New Mortgage Rules

Summary:
Changes made to mortgage industry today are as follows:

Federal Finance Minister Jim Flaherty announced today 3 main changes:
1) The maximum number of years the government will back a mortgage was lowered from 35 to 30.
2) The max that Canadians can refi their home was lowered from 90 per cent to 85 per cent.
3) Government insurance backing on home equity lines of credit, or HELOCs, has been removed.

1) & 2) are straight forward.
3) means Heloc's will not be insured if the Loan-to-Value exceeds 80%.

There was a proposal that would have required 100 per cent of condo fees to be included in GST & TDS however, the current rule of 50 per cent remains.

Keeping you informed!

Full Story:

Federal Finance Minister Jim Flaherty announced today 3 main changes:
1) The maximum number of years the government will back a mortgage was lowered from 35 to 30.
2) The max that Canadians can refi their home was lowered from 90 per cent to 85 per cent.
3) Government insurance backing on home equity lines of credit, or HELOCs, has been removed.

1) & 2) are straight forward.
3) means Heloc's will not be insured if the Loan-to-Value exceeds 80%.

There was a proposal that would have required 100 per cent of condo fees to be included in GST & TDS however, the current rule of 50 per cent remains.

Keeping you informed!