New Mortgage Rules Declared
By Roy Thomas
(Sutton Group-Professional Realty)
If you have been waiting to buy your new Halifax home, wait no longer! On Monday January 17, 2011, Finance Minister Jim Flaherty announced some changes to mortgage rules in Canada that will become effective in March and April, respectively. The maximum amortization period is now 30 years (down from 35 years) for government-backed insured mortgages, when the down payment is less than 20 percent. This new amortization limit will come into force on March 18, 2011. The maximum amount that can be borrowed when refinancing a mortgage is now 85 percent of the value of the home, down from 90 percent. This new refinance limit will come into force on March 18, 2011. The government will no longer provide insurance backing for home equity lines of credit. Government backing for home equity lines of...