New Mortgage Rules May Make Refinancing or Switching Mortgages Harder

Ottawa keeps on harping on the fact that Canadians are burdened by record breaking debt levels.  The major concern is that the inevitable increase in interest rates could cripple hundreds of thousands of individuals and families who are currently living on the edge.  The rate of debt to disposable income in Canada is at 152 per cent, which means many Canadians would have to declare bankruptcy when interest rates increase.

The new mortgage rules which went into effect at the beginning of July have reduced the maximum amortization for a government-insured mortgage from 30 years to 25 years.

In this CTV video,   Brad Lamb of Lamb Development Corp. explains how changes to mortgage rules might affect buyers and existing home owners.

 

 

 

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