New lending guidelines announced
Jim Flaherty announced a series of changes to the mortgage lending process this morning, causing an abundance of media discussion. In the following video, Frank Napolitano of Mortgage Brokers Ottawa discusses these changes, which are expected to take effect July 9th, 2012.
Click here for the full video from Mortgage Brokers City.
On June 21st, the finalized guidelines for the mortgage lending process were announced, causing much media scrutiny. Finance Minister Jim Flaherty formally announced the changes which include:
- Reducing the maximum amortization period on mortgages with default insurance from 30 years to 25.
- Lowering the maximum amount Canadians can borrow when refinancing from 85% to 80% of the value of the home.
- Fixing the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44%
- Limiting the availability of government-backed insured mortgages to homes with purchase prices under $1 million.
In this video, Mortgage Broker Frank Napolitano addresses the above changes, how they will affect the average Canadian and how the advice of a professional Mortgage Broker can help.
Follow the link for the full blogpoast from Mortgage Broker Journal.