1. Canada Mortgage Rule Changes What you need to know info@gtamortgagesolutions.ca 905.581.1792
2. Overview of New Mortgage Rules Maximum amortization reduced to 30 years Maximum refinance limit lowered to 85% of home value Home Equity lines of Credit no longer insured. Maximum borrowing to only 80% of home value info@gtamortgagesolutions.ca 905.581.1792
3. These changes affect Insured Mortgages only info@gtamortgagesolutions.ca 905.581.1792
4. Mortgage Insurance You pay a mortgage insurance premium if you have less than 20% down-payment for purchases, or you are refinancing to higher than 80% of your home value. info@gtamortgagesolutions.ca 905.581.1792
5. Maximum amortization lowered to 30 years from 35 years Effective March 18, 2011 info@gtamortgagesolutions.ca 905.581.1792
6. Lower amortization means: Qualifying for a lesser maximum mortgage amount Higher mortgage payments Lower interest costs over the life of the mortgage info@gtamortgagesolutions.ca 905.581.1792
7. Maximum refinance amount lowered to 85% of home value Effective March 18, 2011 info@gtamortgagesolutions.ca 905.581.1792
8. Lower refinance amount means: Maintain home equity when market values change Reduced access to home equity info@gtamortgagesolutions.ca 905.581.1792
9. No longer insuring Home Equity Lines of Credit Effective April 18, 2011 info@gtamortgagesolutions.ca905.581.1792
10. No longer insuring secured lines of credit means: Home Equity Lines of Credit up to maximum 80% of home value, previously 90% Lender is absorbing product risk instead of mortgage insurance company info@gtamortgagesolutions.ca 905.581.1792
11. Bottom Line The Minister of Finance has put these new rules into place to support the long term stability of Canada’s housing market. All 3 new mortgage rules will encourage Canadians to make smart financial decisions. These new rules are aimed at helping Canadians reduce debt and increase savings, simple as that. info@gtamortgagesolutions.ca 905.581.1792