New Rules for Home Buyers
As of July 9th 2012 the government announced new rules for financing mortgages. We found a great article from RealtorLink.ca that summarizes the changes. It breaks the changes down for us and gives some really great examples of how this will impacts buyers.
A quick over view of these changes are:
- Reduced time frame to pay back the mortgage, from 30 years max to 25 year maximum for CHMC insured mortgages with less than 20% downpayment
- Lowering the maximum amount that can be borrowed against the value of your home from 85% to 80%.
- Lower allowable debit ratios, with a maximum of 44% Total Debt Ratio.
- Homes priced higher than 1 million, must have a 20% down payment.