For the 4th time in 4 years there are more changes today in the mortgage industry.
The federal government has been warning Canadians that the household debt is getting out of control and it hit a record high of 152% of household income last year.
Due to this the following changes have been made.
The maximum amortization for insured mortgages is now 25 years, brought down from 30 years.
The maximum loan to value for refinances is now 80%, brought down from 85%.
There are no changes to the minimum down payment needed to purchase a home, that is still 5%.
I know some of you are looking to purchase a home right now. This will make a significant change in your purchase price that you are approved for.
I have not come across the date the changes will take place, but reducing the amortization from 30 year to 25 years is going to reduce the amount you are qualified for.
Please call me or email me when you get a chance and we can go over your pre-approval.
If you know anyone that is trying to get into the market please let them know I am available for any questions they may have.
This may be a bit of a shocker but I am sure it will help our economy in the long run by reducing the debt we are used to carrying.