New Mortgage Rules: 30 Year Amortizations, 85% refinance, insurance on lines of credit

In: Mortgage News|Real Estate News

17 Jan 2011

Big news just announced in the housing market is that Finance Minister, Jim Flaherty just announced the following changes to the mortgage rules in Canada:

* Mortgage amortization periods will be reduced from 35 years to 30 years.

* The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.

* The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.

Here is a link to more information at the Globe and Mail

What effect will these changes have on the housing market?

When will these new changes take place? According to the government website:

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

What about the amortization reduction. When will that take place? We are looking into the answers. If you know, please leave your comments..

PropertySold.ca

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  • This blog has explained well about the insurance. Nice work.

  • Yes this article is well thought out.

  • Many people are getting insurance for their safety. Health
    care insurance is very ideal just in case we do need it. At least we could use
    it for medical needs.
     

  • While the stated goal of the new rules is laudable, those in the mortgage industry say it's a case of closing the barn door after the horse has bolted: the risky, subprime-type mortgages that were the root cause of the problem have already vanished from the mortgage market.

  • Pretty interesting topic.

  • I have read the article,and I want to say thanks to you for exceptional information. You have provided deep and easily understandable knowledge to us. 

  •  I have read the article,and i want to say thanks to you for exceptional information.You have provided deep and easily understandable knowledge to us.

  • It is viable to go for a health plan
    which offers low premium for basic plans while for comprehensive cover the
    premium charged could be relatively higher. 

    If your health insurance plans
    covers pre existing conditions then you are truly lucky. Else make sure you opt
    a for health plan which covers a wide range of health conditions.

  • do you think, what are there primary reasons why they lower the mortgage amortization? is it in people purchasing power?

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