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Blog by Linda M Linfoot

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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.