Calgary Mortgage Tips

New Mortgage Rules in Effect March 18

If you are thinking about buying or refinancing now is the time if you want a 35 year amortization or if you need to refinance up to 90% loan to value.  With the new rules coming into effect in March it will decrease the amount you can qualify for as well as decrease the amount of equity you can pull out of your property.

Jim Flaherty, the finance minister announced today that effective March 18^th there will be 3 new mortgage rules which are:

1. Reducing maximum amortizations from 35 years to 30 years on high ratio mortgages (less than 20% down payment)
2. Reducing maximum loan to value on refinances from 90% to 85% so you will have to leave 15% equity in your property
3. Removing the ability to insure high ratio home equity lines of credit

Jim said “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

If you would like to read the full article click here.

If you have been thinking about buying or refinancing you can go to my website and find out more information.

January 17, 2011 Posted by jackiefrost | mortgage rules | Leave a Comment