Jun 21, 2012
By Jane Brown
Empty nesters buying condos will soon need a larger downpayment since Canadian mortgage rules are about to get tighter.
Finance Minister Jim Flaherty is expected to announce this morning that he will lower the maximum amortization period on a mortgage from 30 years to 25.
He’ll also limit refinancing loans to 80 per cent of a home’s value, from the current 85.
The changes will make it more difficult for Canadians with limited savings to buy homes, or obtain loans.
It will mark the fourth time Flaherty has tightened mortgage rules in a bid to rein in household debt, which has ballooned amid record low interest rates.