Sunday, June 24, 2012

Flaherty makes changes to mortgage rules in 2012

Some of the mortgage rules in Canada have changed.  Flaherty made an announcement a few days ago.  In an article from bloomberg.com it indicates the following changes:

Maximum  amortization term now 25 years from 30 years.
Home owners can borrow a maximum of 80 % of their house value, formerly 85%.

This seems to be a good idea as it forces people into making better financial decisions when purchasing a hours or borrowing on equity.

First Mortgage Canada

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