Federal Government's Mortgage Insurance Changes Effective March 18th, 2011

Federal Government's Mortgage Insurance Changes

Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules intended to ensure the stability of Canada's housing market.  Effective March 18th, 2011, it will become harder to buy a new home or consolidate debt into your mortgage.
 
These measures include:
  • Amortization period capped at 30 years on insured mortgages over 80% loan to value.
  • The government will no longer insure home-equity lines of credit, or HELOCs effective April 18.
  • Maximum refinancing reduced to 85% from 90% LTV.

There are NO changes to down payment requirements. The minimum down payment, at 5%, will remain as is. Further, there are no plans to target condominium purchases by requiring monthly condo fees be added to the list of expenses that is measured against income to decide whether a buyer can afford a mortgage.

 

Comments:
No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.