New federal mortgage rules:
– Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent, effective March 18.
– Lowers the maximum amount Canadians can borrow in refinancing their mortgages to 85% per cent from 90 per cent of the value of their homes, effective March 18. This translates in making it more difficult in using your homes equity in paying off higher cost credit cards.
– Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs, effective April 18. Which means highest loan to value for a HELOC is 80%
GOOD NEWS is that you can still buy a home with as little as 5% of the price of the home for down payment