Coastal Life Realty Ltd.

Cell: (250) 539-0656 |


Changes in Government backed Insured Mortgages

In January the Federal Government announced changes  to the rules for government backed  insured mortgages. These changes will come into force on March 18, 2011. The changes are as follows:
The Maximum amortization period has been reduced to 30 years from 35 years. This applies to new government insured mortgages with a higher loan to value ratio of 80%.
The percentage of home value to refinance a mortgage against has been reduced to 85% of the home value, down from 90%.
To withdraw government insurance backing on lines of credit secured by homes, such as Home Equity Lines of Credit. This will start April 18th, 2011.
This information was drawn from a publication from the Victoria Real Estate Board.
To see how these new changes will be applied to the CMHC (Canada Mortgage and Housing Corporation) you can follow this link
Charmaine Harris,
Managing Broker / Owner,
Coastal Life Realty Ltd.
MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.