Effective March 18, 2011, it will become harder to buy a new home or consolidate debt into your mortgage.
That’s due to three new changes announced today by Finance Minister Jim Flaherty:
- A 30-year maximum amortization on insured mortgages over 80% LTV
- An 85% LTV limit on insured refinances
- Elimination of government insurance on secured lines of credit (aka., HELOCs)
Flaherty says these regulations are meant to “(encourage) hard-working Canadian families to save by investing in their homes and future.”
Here is the full press release.
Source: Canadian Mortgage Trends