New Mortgage Rules Announced

New rules for Canadian mortgages were announced early this morning:

• Mortgage amortization periods are to be reduced from 35 years to a maximum of 30 years.
• When refinancing a mortgage, Canadians can now borrow a maximum of 85% of the value of their homes, this is reduced from 90%.
• The government will withdraw its insurance backing on lines of credit secured on homes (ex. HELOCs) 

Rules become effective March 18 2011.

As for the real estate market here in Calgary we may see a surge of buyers entering the market in hopes of purchasing a home before these changes are enforced. From speaking with my mortgage broker this morning our understanding is that all sales closing before March 18th will not be affected. Pre-approvals however will not be transferable to purchases made after March 18th.

For more information on how this will affect you as a seller or purchaser feel free to comment here or contact me at brittney.macmillan@creb.com

Ciao for now!