The Canadian Finance Minister (Flaherty) has just announced some changes to mortgage lending rules that will affect you if you are planning to buy a home in the coming months.
Here is a list of the three changes that have been announced January 2011:
1. the 35-year amortization of a mortgage loan is no longer available. The maximum amortization allowed on a mortgage, will now be 30 years.
2. previously, Canadians could re-finance their mortgages, up to 90% of the home's value. The new guidelines will only permit home owners to finance their homes up to 85% of its value.
3. there will no longer be insurance-backing on lines of credit which are secured on the equity in a home.
These changes will certainly cut down the options that home buyers and home owners now have when purchasing or buying a home.
This blog post was written by Elizabeth Blair on January 17, 2011. Elizabeth is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario. Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.
You can contact Elizabeth directly by phone at (905) 510-5785
by email at eblair@mortgageedge.ca
or you visit her website at: www.missmortgage.ca
Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca Lic # M08005880 Brokerage Lic # 10680
Our head office is located at: 15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.
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