Did you know that your version of Internet Explorer is out of date?
To get the best possible experience using our website we recommend downloading one of the browsers below.

Internet Explorer 10, Firefox, Chrome, or Safari.

July 1, 2012
Launch of Government Changes to Canadian Mortgage Rules

On July 9th 2012, a new set of government imposed mortgage rules came into effect.  The new measures will:

  • Reduce the maximum amount on refinancing to 80 per cent form 85 percent of the value of the home.
  • Reduce the maximum amortization period to 25 years from 30 years for government insured mortgages.
  • Limit the maximum gross debt service ratio (the share of the borrower’s gross household income that is needed to pay for home-related expenses) and total debt service ratio (the share of the borrower’s gross income that is needed to pay for home-related expenses and all other debt obligations). The maximum GDS ratio will now be set at 39 per cent and the maximum TDS ratio will be set at 44 per cent.
  • Limit the maximum allowable price for insured mortgages. Homes priced at or above $1 million are no longer eligible for government-backed high ratio insurance and will now require a down payment of at least 20 per cent.

For more information on the new mortgage rules, please visit the Department of Finance Website