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..
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