Mortgage changes in Canada real estate

mortgage-changes-in-canada

The federal government announced amendments to government-backed mortgage standards
in Canada that will take effect on July 9, 2012.

Jim Flaherty, Minister of Finance, announced the following changes to the standards governing government-backed
insured mortgages:

the maximum amortization period was reduced from 30 years to 25 years;

the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from
85 per cent of the value of their homes;

the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio
at 44 per cent;

and the availability of government-backed insured mortgages was limited to homes with a purchase price of less
than $1 million.

Today’s announcement confirms Canadians will continue to be able to purchase a home with five percent down

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