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Changes to Mortgage Standards

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Jim Flaherty, Minister of Finance, announced the following changes to the standards governing government-backed 
insured mortgages:

  • the maximum amortization period was reduced from 30 years to 25 years;
  • the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from 
    85 per cent of the value of their homes;
  • the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio 
    at 44 per cent; and
  •  the availability of government-backed insured mortgages was limited to homes with a purchase price of less 
    than $1 million.

Today’s announcement confirms Canadians will continue to be able to purchase a home with five percent down. 

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