What Canada’s New Mortgage Rules Mean to Home Buyers

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



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