Mortgage Rules change in effect July 9, 2012

Mortgage Rules change in effect July 9, 2012

Four measures were announced:

  1. Amortizations reduced to 25 years
  2. Refinancing limited to 80%
  3. Properties purchased at over $1 million no longer eligible for mortgage insurance
  4. GDS and TDS set at 39% and 44%

Many mortgage professionals think the changes shed some light on the governments belief that the global economy is going to change for the worse. Causing damage to home owners equity while they approch their ceiling limit. These changes could turn out to be very prudent down the road.

To review this morning's Globe and Mail article

To review the government press from Departmant of Finance