July 20, 2012
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.
You can read the full Realtorlink article here or go direct to the government website for more details.