2 of the mortgage rule changes just announced will come into effect on march 18th 2011

New mortgage rules were announced Monday January 17th 2011, and will bring 3 main changes in Ontario:-

taking effect on march 18th 2011 :-

1.  the maximum amortization will be 30 years on insured products having less than 20% down.
for conventional mortgages 35 year amortization should continue to be available. 

2. the refinance limit will be lowered to 85% of the appraised value, down from 90%.

 

 

taking effect on april 18th 2011:-

 

3. government insurance backing on lines of credit secured by homes will be withdrawn.

 

 

N.B. for purchases, buyers can continue to buy with as little as 5% down (self-employed individuals require 10% down)

 

 

so  if  you are thinking of buying a home early in 2011, you  might want to talk to your mortgage advisor to see if it is worth  trying to buy before these changes take place. ... change #1. above could mean a slightly higher monthly payment, and a slightly higher qualifying income.