A little bit more on the new mortgage rules

I’ve had a lot of email this week asking for clarification on the Federal Government’s new rules surrounding mortgage borrowing in Canada.   Basically, these new rules affect you if: a) You have, or were planning to get, a 35-year amortization. The maximum amortization available to Canadians, after the new rules take effect, will be 30 years. b) You're planning to refinance your existing mortgage. Previously, you were allowed to refinance up to 90% of the value of your home. That number is now 85%. c) You were planning on acquiring a HELOC (or Home Equity Line of Credit) to complete those home renovations you've been planning. The government has announced that it will no longer insure these mortgages - meaning lenders are going to have to take on the associated risk themselves. Something they may or may not be willing to do, moving forward. While those are the new rules in a nutshell, there were a lot of questions left unanswered with the government's announcement.  For example, when will the new rules take effect? According to CMHC, if you submit your application before March 18th, you'll make it in under the deadline - even if the deal in question closes after that date. So if you were thinking about any of the above mortgage products, now's the time to make the move! If you already have an existing 35-year amortization, you're not quite out of the woods. If you plan on moving to a more expensive home in the future - one that will require you to increase the size of your mortgage - you won't be able to keep that 35-year amortization. If you're able to port your mortgage and keep it the exact same amount, you can hold onto the 35-year amortization. As always, if you have any further questions surrounding the new mortgage rules, please feel free to give me a call. If I don't have the answer, I'll be sure to find it for you!