Here's a breakdown of the rule changes and when they come into effect (July 9th as has been discussed)
Government of Canada’s announcement, regarding changes to Government Backed Insured Mortgages, effective July 9th 2012.
1) Amortization Period is REDUCED to 25 years for high ratio applications. Banks can continue to offer 30 year amortization on LTV’s 80% or less
2) Refinancing is REDUCED from 85% LTV to 80%
3) Limit GDS to 39% and TDS to 44%
4) Maximum Purchase Price for government backed mortgage insurance is $1 Million. Homes above $1 Million must have 20% downpayment
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