New Mortgage Rules take effect July 9th!
Posted: June 27th, 2012
This past week, the Federal Government announced new mortgage lending rules that are set to take effect within 2 weeks. As of July 9th, 2012 there will be four new measures for insured mortgages with loan-to-value ratios of more than 80%:
• Reduce the maximum amortization period to 25 years from 30 years. On a $350,000 mortgage with 3% interest, it will increase monthly payments by $184
• Lower the maximum amount Canadians can borrow when refinancing a home to 80% from 85%
• Fix the maximum gross debt service ratio at 39% and maximum total debt service ratio at 44%. This may make it more difficult to qualify for a mortgage based on your income and other debts
• Limit the availability of insured mortgages under $1 million
Timing is Everything
If you are thinking about purchasing a new home, take advantage of the current rules and low interest rates today. Contact our sales team for more information about these new mortgage rules and how you can benefit by purchasing before July 9th.