Lots of questions today about the changes to Mortgage Insurance rules. In follow up to my previous blog, this should net it out. Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules intended to ensure the stability of Canada's housing market.
These measures include:
1. AMORTIZATION period reduced to 30 years from 35 years.
2. Maximum REFINANCING Loan to value (LTV) lowered to 85% from 90%.
3. Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
IMPORTANT: There are no changes to down payment requirements as of yet that was widely expected to be raised from 5% to 10%.
Changes will take effect March 18th for 30yr AMORTIZATION and REFINANCING to max 85% whereas changes for Heloc's no longer being insured will take effect April 18th.
Know your options and contact a Realtor or a mortgage broker you trust to support you if you are looking to buy or refinance in the next 6 months.
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