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