Today (January 17th, 2011) Finance Minister Jim Flaherty announced three new changes to Canada’s mortgage rules. The three changes are as follows:
1) A reduction of maximum amortization from 30 to 35 years for insured mortgages, or in other words mortgages that normally exceed 80% of the properties value.
2) Lowering the maximum amount Canadians can borrow in refinancing their homes to 85% from 90% of the value.
3) Withdrawing the backing of government insurance on home equity lines of credit (HELOC’s). Continue reading →