Changing Mortgage Rules

The last several months have seen a change in Canadian mortgage rules to stimulate a stagnant housing market. We have summarized below:
1. The threshold for mortgage insurance has risen to a $1.5 million purchase price. 5% down on the first $500,000 and 10% down on the remainder.
2. First time home owners are eligible for a 30 year amortization, up from the current 25 years for an insured mortgage
3. A Secondary Suite Loan Program with an $80,000 limit and 2% interest rate over 15 years. Details on implementation are still to come.
4. Homeowners renewing their mortgage on a straight switch can change lenders and be exempt from the two percent “stress test” rule.
5. Homeowners can access 90% of their home’s value on a refinance, if the funds are used to build a Secondary Suite.
Navigating the current mortgage market is a complex endeavor. We are here to help, clarify as required and welcome your comments.