CTV News - Mortgage Minute
Date Posted: July 11, 2012
On Monday, July 9th, the four new lending guidelines announced by Jim Flaherty were implemented. Possibly the most discussed change is the reduction of the maximum amortization period on an insured mortgage to 25 years. What this means to the average home buyer is that a 20% down payment must be made in order to avoid default insurance fees and to obtain a 30 year amortization. Going forward, any homes that are purchased with less than 20% down will automatically be amortized over a maximum of 25 years.
Although this change is forecasted to significantly impact the housing market, there are still options available for all buyers. For more information, contact an Ottawa Mortgage Broker.