1. 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.
2. The maximum amount that can be borrowed when refinancing a mortgage is now 85 percent the value of the home, down from 90 percent. This new refinance limit will come into force on March 18, 2011.
3. The government will no longer provide insurance backing for home equity lines of credit. Government backing for home equity lines of credit will end on April 18, 2011.
Exceptions will be allowed after these new changes come into force, if necessary, to satisfy a home purchase or a sale and financing agreement arranged before the above-mentioned March and April dates.
Be sure to talk to an Invis broker about how these changes could affect you, and for advice on the mortgage strategy that fits your needs.
Bank of Canada
Bank of Canada Leaves Key Rate Unchanged
The Bank of Canada said today that it will leave its key interest rate unchanged. This means that Canadian lenders are expected to keep their prime lending rate steady. Products typically linked to a lender’s prime rate include variable-rate mortgages, variable-rate credit cards, and home equity lines of credit. The pricing of fixed-rate mortgages is more affected by trends in the bond markets.
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