Canada Announces Tightening of Mortgage Rules
| Date Published | 6/21/2012 |
| Author | Marja Hoek-Smit |
| Theme | |
| Country | Canada |
-The maximum amortization period
for a government-insured mortgage, will be lowered from 30 to 25 years.
-The upper limit of the
Loan-to-Value ratio will be dropped from 85 per cent to 80 per cent.
Buyers who purchase a home with a down payment of less than 20 per cent of
its value are required to purchase government-backed mortgage insurance.
The government has gradually tightened mortgage rules since 2008, when the
maximum amortization period was 40 years and the maximum LTV was 95 percent.