New mortgage rules in Canada could give home buyers good news!
The new rules for mortgages, set by the Federal Government, take effect March 18, 2011. Mortgages will not be available for longer than a 30 year amortization, and you will not be able to re-finance more than 85% of the value of your home. In addition, Ottawa will withdraw government insurance backing on lines of credit secured by homes.
At a news conference in Ottawa, Mr. Flaherty said the measures will encourage Canadians to save more through home ownership. He said they will also reduce the exposure of Canadians to financial risks.