Here some points regarding the recent change to the Canadian Mortgage Rules. The Government's introduced these rules over continued concern for household debt and to ensure home buyers invest responsibly in home ownership.
1. Mortgage amortization periods will be reduced to 30 years from 35 years.
2. The maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85 per cent from 90 per cent.
3. The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.
4. The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011.
5. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.
Here is a link to the Government Website with more information:
New Mortgage Rules