The Finance Minister announced some new mortgage rules that will affect the mortgage and real estate industry. I would suggest you contact any clients and Realtors that you are dealing with that may be sitting on the fence about purchasing or re-financing to make their decision now.

Here’s a summary of the decisions made:

1. High ratio financing amortized at a maximum of 30 years instead of 35 years. This is for purchase and refinances with less than 20% down, however, you may see some lenders follow suit with conventional financing.
2. Refinances can only go to a maximum of 85% instead of the current 90%.
3. Removing federal government backing on HELOCs (home equity lines of credit).

These changes take effect March 18^th, except for the HELOC rule which takes effect April 18^th.

Again, if you have anyone who has been sitting on the fence waiting out the interest rates to purchase a property or refinance their home and they need to refinance at 90% or need the 35 year amortization I suggest you contact them immediately to get them in before the deadline date.