To Torontonians considering longer mortgage time, changes announced by Finance Minister Jim Flaherty will, of course, mean higher monthly payments but also will significantly reduce the total interest paid and build equity faster in your homes.
- On new government insured mortgages the amortization period will not be permitted to be over 30 years.
- Borrowing amounts to refinance your mortgage will be changed as the maximum amount permitted will be 85 % of the value of your home, a 5% change.
- Changes also affect lines of credit (secured by homes) used for debts unrelated to home purchases. The government has stopped insurance backing of these .
- Mortgage changes begin March 18,2011
- Lines of Credit changes begin April 18, 2011
See "Canada’s well-regulated housing sector has been an important strength that allowed us...... and helped protect us from the worst of the recent global recession,” said Minister Flaherty. Department of Finance Canada