New Mortgage Rules
Finance Minister Flaherty announcing new Mortgage rules:
Some changes to be expected:
- Government insured mortgages will have a maximum amortization of 25 years, down from the previous 30 years
- Refinancing a home for an equity take out is now limited to 80% of the value of the home, a change from the current 85%
- No high ratio, government insured mortgages over $1 million
As a measure to slow the accumulation of debt in Canadian households, this is the fourth set of changes implemented since 2008. At this time, it appears the Bank of Canada will continue to keep rates low. The upcoming rate announcement is scheduled for July 17, 2012.