New lending guidelines announced
Jim Flaherty announced a series of changes to the mortgage lending process on June 21st, causing an abundance of media discussion. In the following video, Frank Napolitano of Mortgage Brokers Ottawa discusses these changes, which are expected to take effect July 9th, 2012.
Click here for the full video from Mortgage Brokers Ottawa.
Jim Flaherty's recent announcement regarding lending regulations has created a significant amount of media scrutiny, and is causing many Canadian borrowers to wonder how they will be affected.
In this video, Ottawa Mortgage Broker Frank Napolitano addresses the four changes, which include:
- Reducing the maximum amortization period on mortgages with default insurance from 30 years to 25.
- Lowering the maximum amount Canadians can borrow when refinancing from 85% to 80% of the value of the home.
- Fix the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44%.
- Limit the availability of government-backed insured mortgages to homes with purchase prices under $1 million
In addition, Frank discusses the changes brought forward by The Office of the Superintendent of Financial Institutions (OSFI) regarding Home Equity Lines of Credit, which were announced later in the day on June 21st.
If you have any questions about the information discussed in this video, feel free to contact a qualified Mortgage Broker.