NEW MORTGAGE RULES!Concern over rising consumer debt levels is prompting Ottawa to make three new changes to Canada's mortgage rules. Finance Minister Jim Flaherty announced Monday that new federal rules will reduce the maximum amortization period to 30 years from 35 years for government-backed insured mortgages with loan-to-value ratios of more than 80 percent. Secondly, Ottawa will lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 percent from 90 percent of the value of their homes. Thirdly, Ottawa will withdraw government insurance backing on lines of credit secured by homes. Though longer amortization periods reduce monthly payments, they greatly increase the amount of interest paid over the life of the mortgage and make it harder to build up equity. View the full story at: http://www.bnn.ca/News/2011/1/17/Flaherty-details-new-mortgage-rules.aspx
Posted by Jodi Gibson
on January 17, 2011
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