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On June 21, 2012  The Honorable  Jim Flaherty, Minister of Finance, announced four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent:

  • Reduce the maximum amortization period to 25 years from 30 years.
  • Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes.
  • Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent.
  • Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.

This new rules were effective from July 9, 2012.

For more detailed information, please visit www.fin.gc.ca
More Info: http://www.fin.gc.ca/n12/12-070-eng.asp