Make your move before July 9th!
The Federal Government announced this morning four new clampdowns on insured mortgages that will quickly come into effect on Monday, July 9th.
These changes include:
-Reducing the maximum amortization period to 25 years from 30 years
-Reducing the maximum amount ofequity homeowners can take out of their homes when refinancing to 80% from the current 85%
-Limiting the availability of insured mortgages to homes with a purchase price of less than $1million -Fixing the maximum gross debtservice ratio at 39% and the maximum total debt service ratio at 44%
The first two changes will have the biggest impact on Canadian borrowers. If you are considering buying a new home or refinancing/renewing your current mortgage, it would be a wise move to act before July 9th!