There have been rumours that the Canadian government was considering changing the mortgage rules again as way to curb rising consumer debt levels. The Finance Minister, Jim Flaherty, has said they have been watching the housing market with great concern as Canadians have been taking advantage of all time low mortgage rates over the past few years to take on larger and larger debt loads. This morning that rumour was proved to be true, as the Finance Minister announced that the government is changing 3 mortgage regulations as follows:
1. Reduce the maximum mortgage amortization period from 35 years to 30 years (on insured mortgages)
2. Reduce the maximum amount Canadians can refinance their mortgage to 85% from 90% of the home’s value
3. The government owned CMHC will not insure HELOCs
The changes are not expected to take place for at least 60 days, so sometime in March 2011. We will delve into more details later today.
If you’re interested in comparing the lates current mortgage rates, you can do so here.