On June 21st The Minister of Finance announced some changes that will take effect on July 9, 2012 which will impact how BUYERS can qualify for mortgages. I have included a link to a BNN interview with TD’s chief economist, Craig Alexander, that can help explain these changes.
Highlights of the changes are:
- 25 year amortization , down from 30
- Maximum refinance to 80% LTV
- Maximum Gross Debt Service ratio of 39% and Total Debt Service ratio of 44%
- Government-backed insured mortgages limited to homes with a purchase price of less than $1 million