Concern over rising consumer debt levels has prompted Ottawa to make implement the following three new changes to Canada’s mortgage rules.
  1. Reduce the maximum amortization period to 30 years from 35 years for government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. Buyers with a deposit of 20% or more will not be affect.
  2. Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes.
  3. Withdraw government insurance backing on lines of credit secured by homes.

The changes to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

Source: The Globe and Mail

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