June 21, 2012:
As announced by the Department of Finance the government has introduced four additional measures to strengthen Canada’s housing market.
These measures apply to new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent:
1. Reduce the maximum amortization period to 25 years from 30 years.
2. Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes.
3. Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent.
4. Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.