Back to Blog

Jim Flaherty, Minister of Finance, announced the following changes to the standards governing government-backed 
insured mortgages:

  • the maximum amortization period was reduced from 30 years to 25 years;
  • the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from 
    85 per cent of the value of their homes;
  • the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio 
    at 44 per cent; and
  •  the availability of government-backed insured mortgages was limited to homes with a purchase price of less 
    than $1 million.

Today’s announcement confirms Canadians will continue to be able to purchase a home with five percent down. 

Comments

No comments

Post Your Comment:

Data supplied by CREB®’s MLS ® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.