4 new mortgage rules announced this morning by Canada’s Finance Minister.
1) amortization length will shorten to 25 years from 30 years
2)refinancing – home owners will only be able to refinance to a maximum of 80%, previously 85%
3)debt servicing tightens – Gross debt servicing will be fixed at a maximum of 39% and total debt servicing’s maximum at 44%
4)insured loans will only be for purchase prices below $1 million dollars.
The amortization cut-back is a big one and will affect how much you qualify for!
If you were thinking about buying or refinancing, contact me ASAP to see if these rules apply to you. www.jenniferestrada.ca