New Mortgage Rules Effective Today

Don't forget homebuyers, Canada's new mortgage rules go into effect as of today, March 18, 2011.


In case you've missed all the discussions, the three new rules are as follows:


1) The maximum amortization period has been reduced to 30 years from 35 years for government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.


2) Ottawa will lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes.


3) Ottawa will withdraw government insurance backing on lines of credit secured by homes.

Finance Minister Jim Flaherty announces Canada's new mortgage rules in January 2011.