Adam Lloyd RE/MAX Advantage

January 17, 2011-  The government of Canada implemented some further changes with regards to mortgages effective March 18th.  Here are 3 key points:

• A 30-year maximum amortization (down from 35-year) on mortgages over 80% LTV.  This means higher mortgage payments for your clients, it will be more difficult to approve them, and they will qualify for less.

• An 85% LTV limit (down from 90%) on refinances.  Clients who are looking to refinance for any reason won’t be able to extract as much equity as they can under the current guidelines.

• Elimination of secured lines of credit (HELOCs) on mortgages over 80% LTV.