New Mortgage Rules Now In Effect
“Changes To Maximum Mortgage Amortization and Maximum Loan To Value Now In Effect”
I had previously written that the Canadian mortgage regulations for institutional mortgage lenders such as banks, credit unions, and trust companies, were changing on a few different fronts.
On March 18, 2011, the first of the proposed changes went into effect.
Mortgage amortization periods have now been reduced from a maximum of 35 years to maximum of 30 years. The only exception to this is if you had a legally binding purchase and sale agreement that was dated on or before March 18, 2011. In these cases, the maximum amortization period can still be 35 years. For every other situation, the new rule will apply. There is no distinction between an insured mortgage loan or an uninsured mortgage; residential home mortgage financing for a purchase or mortgage refinancing… All scenarios will fall under the new rules.
Mortgage refinancing rules for insured mortgages for single family units and any multi unit residential mortgage less than 5 total units, have reduced the maximum loan to value from 90% of the property value to 85% of the property value.
If you require any additional information about the rule changes or would like to discuss how they may impact a mortgage financing scenario you are trying to complete or are contemplating, I suggest that you give me a call and book a time where we can go through everything together and get all your questions answered.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel