Government of Canada Tightens Reins on Canada Mortgage Market
As of March 18, 2011, two significant changes will take effect in Canada, with the third change commencing as of April 18, 2011:
- No more 35-year amortization on insured mortgages with an LTV greater than 80 per cent. Now amortization on these mortgages will be capped at 30 years.
- No more 90 per cent LTV refinances. Now insured refinances will be capped at 85 per cent LTV.
- No more government insurance provided on lines of credit secured on homes. This includes Home Equity Lines of Credit, or HELOCs.