Monday, 25 June 2012

Mortgage Rules Getting Even Tougher




On June 21st the department of Finance announced another round of mortgage rule tightening. Here are the highlights

  • The maximum amortization period has been reduced to 25 years 
  • The refinancing maximum dropped to 80% from 85%
  • Mortgage payments will now be capped at 39% of gross personal income, and the total debt service ratio will be capped at 44%.
  • Insured mortgages will no longer be available for homes priced above $1 million

This could mean that we see  homes sales accelerating very briefly over the next
couple of weeks before the July 9th implementation period.  


Read the whole release here: http://www.fin.gc.ca/n12/12-070-eng.asp


No comments:

Post a Comment