Tighter Guidelines for Qualifying
Tighter guidelines for qualifying:
Canada's mortgage insurance
rules. Four measures were announced:
1. Amortizations reduced to 25 years
2. Refinancing limited to 80%
3. Properties purchased at over $1 million no longer eligible for mortgage
insurance
4. GDS and TDS set at 39% and 44%
CAAMP believes that Canadians understand the importance of paying
down their mortgages. These changes, together with new OSFI underwriting
guidelines - also to be announced today - may precipitate the housing market downturn the government so
desperately wants to avoid. The changes take effect July 9, 2012.