New mortgage rules in Canada with mortgage broker Mark Fidgett Video

http://www.notapennydown.com Mortgage Broker Mark Fidgett explains the new mortgage changes.
MEASURES ANNOUNCED TODAY
Today, the Government announced three changes to the standards governing government-backed insured mortgages.

LIMIT THE MAXIMUM AMORTIZATION PERIOD TO 30 YEARS

The amortization period is the length of time it will take to pay off the entire mortgage loan. It is usually much longer than the term of the mortgage. A typical mortgage in Canada may have a term of five years or less during which a specific fixed or variable interest rate will apply, and the mortgage can be renewed at the end of the term.

The measure announced today will reduce the maximum amortization period from 35 years to 30 years. For any given mortgage loan, a lower amortization period would result in a moderate increase in the monthly payment along with a significant reduction in the total interest paid over the amortization period. This measure is consistent with the principle of encouraging savings through home ownership. The following table illustrates the benefit of reducing the amortization period from 35 years to 30 years for a mortgage loan of $300,000.
LOWER THE MAXIMUM REFINANCING AMOUNT TO 85 PER CENT OF THE LOAN-TO-VALUE RATIO

Borrowers can refinance their mortgage and increase the amount of the loan secured against their home. The measure announced today will reduce the limit on refinancing from 90 per cent to 85 per cent of the value of the home. Refinancing lowers the borrower's equity in their home. Reducing the maximum loan-to-value ratio on refinancing will encourage Canadians to keep equity in their home and save through home ownership.

As an illustration, for a home valued at $300,000, refinancing at 90 per cent would allow the homeowner to access up to $270,000, whereas refinancing at 85 per cent would allow the homeowner to access up to $255,000. The lower refinancing limit means homeowners will keep an additional $15,000 in the equity of their home.

WITHDRAW GOVERNMENT INSURANCE BACKING ON ...

well... this pretty ...
well... this pretty much squeezes me out of the? market. thanks government! im renting for the rest of my life now!