Ottawa announced changes in mortgage rules today that will go into effect July 9th, 2012. These mortgage rules passed down by Ottawa are being put into place in hopes of cooling off the Canadian real estate market and will indeed make it harder to Canadians to have access to mortgages.
The significant changes coming to the Canadian mortgage market include:
A cap of $1 million on insured mortgages.
A reduction to TDS (total debt service) ratio down to 39%.
The amortization period will be cut to 25 years maximum.
The maximum refinance LTV on insured mortgages will be cut to 80%.
Later today, it is expected that OFSI (Office of the Superintendent of Financial Institutions) will publish their underwriting changes to mortgages.
These are major changes to the Canadian mortgage market and MonsterMortgage.ca will be elaborating further on these changes soon.