With the economic recovery still fragile, we are focused on ensuring stability and certainty in Canada’s housing market.
Our Government constantly and closely monitors the housing market, ready to take prudent and sensible measures as needed to sustain the economic recovery and ensure its ongoing stability.
That is why we are taking prudent and sensible action to strengthen Canada’s housing market, by:
Reducing the maximum mortgage period to 30 years from 35 years for new government-backed insured mortgages, which will significantly reduce the total interest payments Canadian families make on their mortgages.

Lowering the maximum amount lenders can provide when refinancing mortgages to 85 per cent from 90 per cent of the value of the property.

Withdrawing government insurance backing on home equity lines of credit.
The prudent and sensible measures announced today will help sustain the economic recovery by ensuring the Long-Term Stability of Canada’s Housing Market.


Backgrounder:

Limit the Maximum Amortization Period to 30 Years



Lower the Maximum Refinancing Amount to 85 Per Cent of the Loan-to-Value Ratio

As an illustration, for a home valued at $300,000, refinancing at 90 per cent would allow the homeowner to access up to $270,000, whereas refinancing at 85 per cent would allow the homeowner to access up to $255,000. The lower refinancing limit means homeowners will keep an additional $15,000 in the equity of their home.

Moving to the New Framework

The adjustments to the maximum amortization period and the maximum refinancing amount will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.