Overview of New Mortgage Rules
•Maximum amortization reduced to 30 years
•Maximum refinance limit lowered to 85% of home value
•Home Equity lines of Credit no longer insured. Maximum borrowing to only 80% of mees homes value
[email protected] 780.809.0880
Mortgage Insurance
You pay a mortgage insurance premium if you have less than 20% down-payment for purchases, or you are refinancing to higher than 80% of your home value.
[email protected] 780.809.0880
Maximum amortization lowered to 30 years
from 35 years
EffectiveMarch 18,
2011
866.932.8412
Lower amortization means:
[email protected] 866.932.8412
•Qualifying for a lesser maximum mortgage amount
•Higher mortgage payments• Lower interest costs over the life of the
mortgage
* 40 year amortizations still available for uninsured mortgages.
Maximum refinance amount lowered to 85%
of home value
Effective
March 18,
2011
780.809.0880
Lower refinance amount means:•Maintain home equity when market values change•Reduced access to home equity
[email protected] 780.809.0880
No longer insuring Home Equity Lines of Credit
Effective
April 18, 2011
780.809.0880
No longer insuring secured lines of credit
means:•Home Equity Lines of Credit up to
maximum 80% of home value, previously 90%
•Lender is absorbing product risk instead of mortgage insurance company
[email protected] 780.809.0880
Bottom LineThe Minister of Finance has put these new
rules into place to support the long term stability of Canada’s housing market. All 3 new mortgage rules will encourage Canadians to make smart financial decisions. These new rules are aimed at helping Canadians reduce debt and increase savings, simple as that.
Contact us
Martene Woodward Jackie WoodwardMortgage Associate Mortgage Associate, AMP
Call: 888.932.8412Email: [email protected]: www.mortgagegirl.ca
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