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.