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June 2012

Found 1 blog entry for June 2012.

Yesterday the federal government announced new mortgage rules to take effect July 9th. The changes include: 1. Reducing the maximum amortization period to 25 years from 30 years    2. Reducing the maximum amount of equity homeowners can take out of their homes when refinancing to 80% from the current 85% 3. Limiting the availability of government-backed mortgages to homes with a purchase price of less than $1 million 4. Fixing the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44% The 1st and 4th change will have a fairly large impact on our purchasing market. Keep in mind that these changes are only for those needing high ratio mortgages, with less than 20% down payment. Purchasers with less than 20% down will find…
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