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21 Jun

Four New Clampdowns on Insured Mortgages: Effective July 9, 2012


Posted by: Kimberly Walker

If you’re considering buying a new home or refinancing/renewing your current mortgage, it would be a wise move to act before July 9th!


The Federal Government announced this morning four new clampdowns on insured mortgages that will quickly come into effect on Monday, July 9th, 2012.


These changes include: 

  • Reducing      the maximum amortization period to 25 years from 30 years 
  • Reducing      the maximum amount of equity homeowners can take out of their homes when      refinancing to 80% from the current 85% 
  • Limiting      the availability of government-backed mortgages to homes with a purchase      price of less than $1 million 
  • Fixing      the maximum gross debt service ratio at 39% and the maximum total debt      service ratio at 44%


The first two changes will have the biggest impact on Canadian borrowers.


If you’d like to review your options or if you have any questions, please give me a call or send me an email, and I’ll be happy to discuss how these changes may affect your mortgage situation. It’s my job to ensure you have the best options and strategies available at all times!!