On July 9th, 2012 Ottawa is changing the rules for government-backed insured mortgages.
Mr. Cameron Muir, Chief Economist for the BC Real Estate Association, says these changes will not affect everyone, only some homebuyers – mostly those opting for high-ratio mortgages due to low down payments.
Changes include:
New mortgages will be subject to: (government-backed)
• fixed maximum gross debt ratio of 39% and maximum total debt service ratio of 44%.
• reduced mortgage amortization periods from 30-years to 25-years
