Monday July 9th, 2012
It is clear from the changes that have been implemented over the past 4 years that the Government is clearly targeting a few areas of mortgage lending that it feels would best deal with the housing market that just seems to continue chugging along.
For those of you who aren’t fully aware of these changes here is a recap:
1.The maximum amount you can borrow when refinancing your home has been decreased from 85% of the value of your home to 80%.
2.The maximum amortization that you can have on your home is now 25 years, down from 30 years.
3.You will no longer be able to insure a mortgage if it is greater than $1 million.
4.A reduction of the Gross Debt Service ratio from 44% to 39%.
