New Mortgage Rules Effective July 9th!

Attention Personal Choice Mortgage Services’ Clients,

As you have probably heard on the news Finance Minister Jim Flaherty has announced the fourth round of mortgage restrictions in four years.

Effective JULY 9TH 2012 further changes will be applied to Canada’s mortgage insurance rules. Starting July 9, 2012,clients with less than 20% equity will no longer be able to get a prime mortgage with:

  •  A 30 year amortization the maximum will now be 25 years 
  •  A refinance to 85% loan to value of your home, the maximum will now be 80% LTV.

In addition, the government will:

  • Limit the maximum gross debt service (GDS) and total debt service (TDS) to 39% and 44% respectively (Currently, GDS does not apply to qualified borrowers with credit scores of 680+), and
  • Properties purchased over $1mm will no longer be eligible for mortgage insurance

Impact on you the Personal Choice Client,

  • If you are currently in a 30-40 year amortization,
  • If you were considering refinancing prior to this news NOW is the time to do this in order to receive the maximum equity out of your home, 
  • If you were recently pre-approved by Personal Choice and planned to do it with less than 20% down

Please contact our office immediately to see how these changes will affect you!

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