The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.
“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”
“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”
The maximum amortization for insured mortgages is now 30 years, down from 35.
The maximum loan to value for refinances is now 85%, down from 90%.
They have withdrawn government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs.
The previous changes made in 2008 did not affect the market too drastically. I think these changes will strenghten our ecomony more and secure it down the road.
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