URGENT NEWS RELEASE
Jim Flaherty, Federal Finance Minister announced rule changes today
The maximum number of years the government will back a mortgage was lowered from 35 to 30.
- The maximum that Canadians can refinance their home was lowered from 90 per cent to 85 per cent.
- Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
- Home Equity Lines of Credit will not be insured if the Loan-to-Value exceeds 80%.
There was a proposal that would have required 100 per cent of condo fees to be included in GST & TDS however, the current rule of 50 per cent remains for the purpose of calculating debt service.
The government said exceptions would be allowed after the new measures come into force when needed to satisfy a home purchase or sale and financing agreement struck before the March and April in-force dates.
Buyers who have been sitting on the fence waiting for prices to come down, and who may be in danger of not qualifying under the new rules, had better think twice, else they risk cutting themselves out of the market altogether. I can currently accommodate one or two buyers who need to get moving on this before the new rules come into effect.