Mortgage rules change today but most Canadians are unaware!

TORONTO — New mortgage rules go into effect today in Canada but a recent  survey suggests many people are unfamiliar with the changes.

Starting Monday July 9th, 2012, lenders can only issue home equity loans up to a maximum of  80% of a property’s value — down from 85%.

The maximum amortization period also drops to 25 years from 30 years — giving  borrowers less time to repay the debt in full.

In addition, the federal government is capping the maximum debt ratios for  households and limiting government insurance to mortgages on homes with a  purchase price of less than $1-million.

A poll conducted by Pollara for Bank of Montreal found only about half of  those surveyed were familiar with the changes brought in by the federal  government.

And only 45% of those surveyed June 29 to July 4 were aware that the maximum  amortization period has been shortened by five years.

Read the full Leader Post article here!


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