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GTA Mortgage Solutions

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GTA Mortgage Solutions

  1. 1. Canada Mortgage Rule Changes<br />What you need to know<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  2. 2. Overview of New Mortgage Rules<br />Maximum amortization reduced to 30 years<br />Maximum refinance limit lowered to 85% of home value<br />Home Equity lines of Credit no longer insured. Maximum borrowing to only 80% of home value<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  3. 3. These changes affect Insured Mortgages only<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  4. 4. Mortgage Insurance<br />You pay a mortgage insurance premium if you have less than 20% down-payment for purchases, or you are refinancing to higher than 80% of your home value.<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  5. 5. Maximum amortization lowered to 30 years from 35 years<br />Effective<br />March 18, 2011<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  6. 6. Lower amortization means:<br />Qualifying for a lesser maximum mortgage amount<br />Higher mortgage payments<br />Lower interest costs over the life of the mortgage<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  7. 7. Maximum refinance amount lowered to 85% of home value<br />Effective<br />March 18, 2011<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  8. 8. Lower refinance amount means:<br />Maintain home equity when market values change<br />Reduced access to home equity <br />info@gtamortgagesolutions.ca 905.581.1792<br />
  9. 9. No longer insuring Home Equity Lines of Credit<br />Effective<br />April 18, 2011<br />info@gtamortgagesolutions.ca905.581.1792<br />
  10. 10. No longer insuring secured lines of credit means:<br />Home Equity Lines of Credit up to maximum 80% of home value, previously 90%<br />Lender is absorbing product risk instead of mortgage insurance company<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  11. 11. Bottom Line<br />The Minister of Finance has put these new rules into place to support the long term stability of Canada’s housing market. All 3 new mortgage rules will encourage Canadians to make smart financial decisions. These new rules are aimed at helping Canadians reduce debt and increase savings, simple as that. <br />info@gtamortgagesolutions.ca 905.581.1792<br />
  12. 12. More Questions?<br />info@gtamortgagesolutions.ca 905.581.1792<br />
  13. 13. Contact us<br />Call: 905.581.1792<br />Email: info@gtamortgagesolutions.ca<br />Visit: www.gtamortgagesolutions.ca<br />

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