Major Changes Coming In The Mortgage Industry!

MAJOR CHANGES ANNOUNCED IN THE MORTGAGE INDUSTRY TODAY! Once again, the government has tightened their lending policies. As of July 9, 2012, here are the major changes that will be taking place on all insured mortgages (mortgages with less than 20% down):

1) Maximum amortization period is REDUCED from 30 years to 25 years. 2) Maximum refinancing amount is REDUCED from 85% LTV (loan to value) to 80%. 3) Maximum GDS REDUCED from 44% to 39% (clients will qualify for less of a mortgage).
4) Maximum purchase price is $1,000,000 (you need to put 20% down to purchase a million dollar home).

http://www.theglobeandmail.com/news/national/ottawa-tightening-mortgage-rules-no-more-30-year-amortizations/article4358876/?cmpid=rss1

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