Effective March 18, the maximum amortization period is reduced from 35 to 30 years for government-backed mortgages with loan-to-value ratios greater than 80 per cent; and the maximum Canadians can borrow to refinance their mortgage falls from 90 to 85 per cent of the value of their homes.

In addition, effective April 18, the government will no longer insure lines of credit with homes as collateral, such as home-equity lines of credit.

Much has been made about how reducing amortization periods from 35 to 30 years on a $300,000 mortgage at four-per-cent interest will cause monthly payments to go up $105. Instead, people should be thankful that the change will save them $42,288 in interest.

With Canadians owing $1.48 of every dollar of their disposable income, this is more household debt per capita than the United States.
Jittery times have made the government once again step in to try and save us, from ourselves.
 

With my Bay Realty partner Roslyn Ehmann, we provide our clients with a complete real estate package of integrity-expertise-and proven success.