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Say Goodbye to 30 year amortizations

Posted by Jeff Trounsell (jefftrounsell) on Jun 21 2012
Blog >> June 2012

Department of Finance Announces Tightening On Mortgage Rules ... AGAIN!!!


Jim Flaherty said at a press conference this morning in Ottawa, that effective July 9, 2012 the following changes will take effect regarding mortgage lending;


1. Reducing the maximum amortization to 25 years on high-ratio insured mortgages
2. Eliminate lending on high-ratio mortgages over $1 million
3. Reducing LTV to 80% from 85% on refinances
4. Restrict borrowers from mortgage insurance if their maximum gross debt service ratio exceeds 39%     


Just like the last time the Finance Minister changed the rules eliminating 40 and 35 year amortizations, conventional maximum amortizations followed months later by the majority of lenders, meaning it will be more difficult for home buyers to get in (or move up) in today's housing market.


Last changed: Jun 21 2012 at 9:23 AM


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