How the new Mortgage Rules 2011 will affect Canadians?

Mortgage Rules CMHC will implement the following new measures to all applications for mortgage loan insurance:

Effective March 18, 2011:

  • Reduce the maximum amortization period from 35 to 30 years for new insured mortgages with loan-to-value ratios of more than 80 per cent.
  • Lower the maximum amount Canadians can borrow when refinancing a 1 – 4 unit owner-occupied property from 90 to 85 percent of the value of their homes.

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