On Monday Jan. 17th the federal government announced 3 changes concerning government backed (CMHC) mortgages. The three changes as are follows:
1. The maximum amortization will be decreased from 35 years to 30 years. This is effective as of March 18th, 2011 however, if you have an approval prior to that date for a closing after March 18th then you will still be able to obtain the 35 year amortization.
2. The maximum that you will be able to refinance on your current property is up to 85% of the value. This is down from 90% of the loan to value and is effective as of March 18th.
3. The last of the changes is CMHC backing for HELOCs or Home Equity Lines of Credit will cease to exist as of April 18, 2011.
More details to follow on how these changes may affect you. Please feel free to contact me should you have any questions or concerns. For the GLOBAL News interview, please click here to watch…
Kim Gibbons, ” Your Mortgage Superhero ®”
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