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[Home] [Federal Government Announces New Lending Rules]
new lending rules mississauga Konda Financial  Equity Associates

On Monday January 17, 2011 morning, the Federal Finance Minister announced some minor changes to mortgage lending that will have some affect on borrowing guidelines:

  1. As of March 18, 2011, a person who wants to take out a loan against their existing home will be able to borrow a maximum of 85% of the value of their home, down from 90%. This is for refinances only, not purchases which remains at 95%.
  2. CMHC will no longer insure any mortgages with an amortization period longer than 30 years. Until the change, it was insuring 35-year amortized mortgages.
  3. There was mention of stopping high ratio default insurance on Home Equity Lines of Credit but that was already established in another lending change.

For further information on the Minister's new lending guidelines please go to the Department of Finance website: Government Press Release