Important new rules from Ottawa today regarding mortgage regulations and guidelines!
In an effort to avoid the sort of housing meltdown that has damaged the U. S. economy, the Finance Department today said it was reducing the maximum amortization period for new government-backed mortgages to 35 years from the previously allowed 40 years.
The government states that Canada's housing and mortgage markets are performing better than the United States and the new ruling which will come in effect October 15th, 2008 will assure the continuation of this. They state that the historically prudent and cautious approach taken by the Canadian financial institutions to morgage lending, combined with a sound supervisory regime, has allowed Canada to maintain strong and secure housing and mortgage markets.
New regulations will require a consistent credit score for mortgages the government backs along with a minimum level of loan documentation standards to evidence property values and borrowers' income. The final change will be a capping at 45% on a borrower's debt-service ratio.
These changes will take force on October 15th, 2008 and means that people looking to purchase or refinance their home with a high ratio mortgage need to act quickly!
Contact Mary Wozny, 877-446-9791 or email mwozny@mortgagealliance.com today to secure your financing before these new rules come into effect.
Warmly,
Mary Wozny
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