Government Announces Changes to Mortgage Rules in Canada
The Federal Government has announced major changes to the rules regarding mortgages in Canada. Federal Finance Minister, Jim Flaherty, has created these changes to curb the increase in household debt that many Canadians are experiencing.
Federal Finance Minister, Jim Flaherty
The major changes are:
1. A reduction in the maximum amortization period from 35 years to 30 years. This rule will affect homebuyers who initially put less than 20 per cent down. Canadians with down payments lower than 20 per cent will have to increase their monthly payments to pay off their mortgage earlier.
2. The maximum amount borrowed on a home equity loan will be reduced from 90 per cent of the principal paid, to 85 per cent. This means the limit you will be able to borrow will be considerably less.
3. The Federal Government will no longer insure home equity lines of credit.
The rules for mortgages will take effect on March 18th of this year.
Before these rules are made law, Alpine Credits would implore you to take full advantage of the current home equity status.
Apply today at our website.
This is default description text on Padangan Themes, of course you can change this text via you profile administration.