Below are the new regulations:
Source ~ CBC
~Maximum amortization is decreasing down from 35 years to 30 years.
~Maximum Equity Take out is decreasing from 90% to 85%.
~Government insurance backing on "home equity lines of credit"(HELOCs), has been removed.
FAQ'S
Q: Does the mortgage , either a purchase or refinance , have to close by March 18th ?
A: No, it has to be a firm contract and approved before March 18th, however it can close after.
Q: I have a pre-approval but I haven’t found a home before March 18th, how does this affect me?
A: it has to be a firm contract in place before the 18th, however it can close after the 18th.
Q: I have a 40 year amortization. At renewal will I get a 30 year amortization or 35 year?
A: You will get a 35 year amortization in most cases. **"Depending on the lenders underwriting guidelines at time of renewal."
Q: I’m in a 35 year amortization and would like to refinance/debt consolidate my mortgage?
A: if we get it approved before March 18th 35 year will be available, after the 18th it will be 30 year.
Q: I’m thinking of porting my mortgage over to a new home purchase, what happens?
A: Each lender seems to have a different policy and/or on case by case scenario's, if you are thinking of selling and porting your mortgage please let me know and I would be happy to assist you.
Please note that until you apply to a lender, they have the last word and base their final decisions on each individual application.
**Effective dates may vary depending on the lender, who may exercise to adopt the new mortgage rules prior to the March 18/11 date.
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Here is the link http://www.cbc.ca/news/business/story/2011/01/17/flaherty-mortgage-changes.html
Please feel free to contact me with any mortgage related questions you may have.
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604-818-2581
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