Almost half of Canadians don't know new mortgage rules
Canada's Finance Minister is moving aggressively to cool down the mortgage market, but it appears many Canadians aren't paying attention.
Four major changes to the lending process were announced June 21st by Finance Minister Jim Flaherty, yet a recent survey reveals that approximately 49% of Canadians still aren't familiar with them. This article from the Globe and Mail shares the statistics.
The changes include: reducing the maximum amortization period on an insured mortgage from 30 to 25 years, capping refinancing to 80% of a home's value, fixing the gross and total debt service ratios and disallowing homes over $1 million to be eligible for default insurance. The changes take effect today, July 9th, and among those surveyed, 26% still think the maximum amortization period is 30 years or longer.
One thousand people took part in this survey, conducted in late June and early July. 66% of respondents believe themselves to be up to date on the changes.
For more information on the new lending guidelines, talk to an Ottawa Mortgage Broker.