Tag Archives: Canadian mortgages


Why Buying Before March 15th Can Save You $$$

Canadian Mortgage Changes

Guest post by BMO Mortgage Specialist, Kelly Sullivan.

In January 2011, Finance Minister Jim Flaherty announced the following amendments to the minimum standards for the mortgage insurance guarantee framework:

  • Fixing the maximum amortization period for new government-backed insured mortgages to 30 years.
  • Lower the maximum refinancing amount to 85 per cent of the loan-to-value ratio.

In plain English, what this means is that the maximum mortgage period is to be reduced from 35 to 30 years and, when refinancing, the maximum amount you can borrow is to reduce from 90 to 85% of your property’s value.

There is, however, a time-limited exception to these rules. If you have an agreement that’s approved by your bank prior to March 15, 2011, you can still obtain a 35 year mortgage or borrow up to 90% of your property’s value.

Whether or not it’s a good idea to borrow the maximum amount or to refinance over the maximum period will depend on your circumstances.

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