The Federal Government announced this morning four new clampdowns on insured mortgages that will quickly come into effect on Monday, July 9th, 2012.
These changes include:
- Reducing the maximum amortization period to 25 years from 30 years
- Reducing the maximum amount of equity homeowners can take out of their homes when refinancing to 80% from the current 85%
- Limiting the availability of government-backed mortgages to homes with a purchase price of less than $1 million
- Fixing the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44%
Anyone who is considering buying a new home or refinancing/renewing their current mortgage needs to be aware of how these changes will effect them after July 9th!
The first two changes will have the biggest impact on Canadian borrowers.
If you’d like to review your options or if you have any questions, please give me a call 705-794-1283 or send me an email cory@ndlc.ca, and I’ll be happy to discuss how these changes may affect your mortgage situation. It’s my job to ensure you have the best options and strategies available at all times!
Thank you,
Cory Kline, Mortgage Advisor at Neighbourhood Dominion Lending Centres (cory@ndlc.ca or 705-794-1283)