Ottawa Real Estate Investors Organization

Fellow OREIO members,

Welcome to round # 4 of major Canadian Mortgage changes
here are the details

October 15, 2008 Round # 1
CMHC Drops 100% Financing and 40-Year Amortizations.

April 19, 2010 Round # 2
The lenders will demand you qualify with a posted rate by Bank of Canada.

March 18, 2011 Round # 3
A 30-year maximum amortization on insured mortgages over 80% LTV
An 85% LTV limit on insured refinances
Elimination of government insurance on secured lines of credit (aka., HELOCs)

July 9th,2012-Round # 4
Maximum amortization reduced from 30 to 25 years
No more insurance for homes valued at more than $1 million
GDS and TDS set at 39% and 44%
Maximum refinance reduced from 85% to 80% LTV
The 5% down payment rule remains intact.

My two cents!
Navtaj Chandhoke