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New Mortgage Rules Announced

Blog by Sara Kalke | January 17th, 2011

New Mortgage Rules Announced

The Canadian Government announced new mortgage rules today.  The 3 main changes are:

- maximum amortization period reduced from 35 years to 30 years
- maximum value for mortgage refinancing reduced from 90 percent to 85 percent
- government insurance will no longer back lines of credit secured by homes - more commonly known as a "Home Equity Line of Credit"

These changes are expected to come into effect March 18, 2011. 

Full Globe & Mail article here:  http://www.theglobeandmail.com/report-on-business/economy/housing/flaherty-details-new-mortgage-rules/article1872599/