Monday, Canada's finance minister announced new tighter mortgage rules that will take effect March 18th.
The rules in a nutshell:
1)CMHC will no longer insure morgages amortized more than 30 years (from 35).
2) The maximum amount that can be refinanced will be 85% (From 90) of the value of the property.
3)CMHC will no longer insure home equity lines of credit.
These new rules are aimed to promote saving through home ownership and discourage debt, hoping Candians will pay off mortgages quicker and thus pay less total interest.
The message here folks is not to overextend yourself in debt!
Any questions? Let me know! :)
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