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Mortgage Tips by Jerry Sims

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Blog by John Jennings | June 29th, 2012

Recent Changes to Mortgage Lending Rules

You may have heard about the recent changes that the Federal Government has announced in order to try and curb mortgage credit.  In a nutshell the four new rules are outlined as follows:

  • Mortgage insurance will not be provided on properties valued at over $1 million
  • The maximum amortization will be reduced from 30 to 25 years
  • Loan-to-value ratios on refinances have been lowered from 85% to 80%
  • The gross debt service (GDS) and total debt service (TDS) ratios have been capped at 39% and 44% respectively

These changes will come in to effect on July 9th and will only affect those borrowers who have less than a 20% down payment or equity in their home, commonly referred to as high-ratio borrowers. 

If you have any questions about how these changes may affect you and your borrowing power please feel free to contact me and I can calculate the numbers as they apply to your personal situation.

Jerry Sims Mortgage Broker

Jerry Sims, AMP
Mortgage Consultant
Verico Ambro & Associates Mortgage Consultants Ltd.
c 604.808.3420
f 604.924.8178