January 17, 2011 - Department of Finance - The Harper Government Takes Prudent Action

[herefishyfishy]

Department of Finance - The Harper Government Takes Prudent Action to Support The Long-Term Stability of Canada's Housing Market

Link to News Release:
http://www.fin.gc.ca/n11/11-003-eng.asp

Link to their Explanations:
http://www.fin.gc.ca/n11/data/11-003_1-eng.asp

[herefishyfishy]

The new measures announced are:

1. Limit the maximum amortization period to 30 years

-(will affect all new and existing home owners)

2. Lower the maximum refinance amount to 85 per cent of the loan-to-value ratio

-(will affect existing home owners, owner occupied properties only)

3. Withdraw government insurance backing on non-amortizing lines of credit secured by homes

-(may affect how banks stipulate payback of home equity lines of credit for new and existing home owners)