Thursday, February 10, 2011

Maria Mak - Burnaby Realtors® - Federal government announces changes to mortgage financing requirements

Sutton Centre Realty
3010 Boundary Road
Burnaby BC V5M 4A1
(Office): 604-435-9477
(Cell): 604-839-6368

The federal government recently announced three changes to the rules for government-backed insured mortgages.

First, the government will reduce the maximum mortgage amortization period from 35 to 30 years. Second, the maximum amount of the value of a home that can be re-financed will drop from 90 per cent to 85 per cent. And finally, government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit.

“These are prudent measures that promote responsible lending practices and further strengthen our internationally recognized mortgage finance system,” Jake Moldowan, Board president said.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

For all your mortgage financing and quality real estate services, please contact Maria Mak at Sutton Centre Realty at 604-839-6368 or visit my websites at,, You'll be smiling too!

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