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Maria Mak. Burnaby REALTORS® / Burnaby Real Estate's. *Latest Housing Market Update*. Latest Mortgage News...

By Maria Mak - Sut... on July 9, 2012 - 8:41pm


Mortgage rules change today, but about half of Canadians don’t know it, a recent survey suggests many people are unfamiliar with the changes

New mortgage rules go into effect today in Canada but a recent survey suggests many people are unfamiliar with the changes.

Starting Monday, lenders can only issue home equity loans up to a maximum of 80% of a property's value — down from 85%.

The maximum amortization period also drops to 25 years from 30 years — giving borrowers less time to repay the debt in full.

In addition, the federal government is capping the maximum debt ratios for households and limiting government insurance to mortgages on homes with a purchase price of less than $1-million.

A poll conducted by Pollara for Bank of Montreal found only about half of those surveyed were familiar with the changes brought in by the federal government.

Maria Mak. Burnaby Real Estate Agents. Burnaby Realtors @ Sutton Centre Realty- * latest mortgage news*

By Maria Mak - Sut... on June 30, 2012 - 7:15pm

OTTAWA — The federal government is moving once again to tighten mortgage-lending rules amid lingering concerns about an overheated housing market and rising household debt levels.

In a decision called for by some of the big banks — and one that's expected to soften housing prices — Finance Minister Jim Flaherty announced Thursday the federal government is reducing the maximum amortization period for a government-insured mortgage to 25 years from 30 years.

It's the third time the Harper government has reduced the maximum amortization period in the last four years, after it initially increased the lengths of mortgage terms to make it easier for Canadians to purchase homes.

The government has since ratcheted it back from 40 years to 35 in 2008, and then further reduced it to 30 years in 2011.

Visit Maria Mak's website for all detailed mortage rules being effective July 9th 2012, or contact Maria Mak and her mortgage teams @ 604-839-6368 for details.

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