New Mortgage Rules were announced this week in Canada. The new rule is that mortgages that are insured through CMHC must have an amortization of 25 years or less. What does it mean to you? If you have an existing mortgage with an amortizaton of 30 or 35 years then you are not likely affected. You can renew your existing mortgage under the amortization previously agreed to, but if you refinance (increase the amount of your mortgage at a later date) you will need to come under the new rules. If you have already signed your real estate contract, you are likely fine. The government as of now seems to be implementing this to deals signed after the announcement. If you are putting down more than 20% then your mortgage does not require CMHC insurance, therefore, the new rules do not apply to you. This will only affect new mortgages insured through CMHC.
The real estate Lawyers at Courtney Aarbo can help you with these and any other real estate law questions. Please do not hesitate to call us at 403-571-5120.