- 25 year is the longest amortization period
- More stringent income requirements for self-employed borrowers.
- Funds from cashback mortgages are not allowed as a source of down payment
- Use of the five-year posted “benchmark” to qualify uninsured terms of one to four years and all variable terms (currently most lenders use a three-year posted or a lower rate to qualify uninsured mortgage).
- Home insurance to be included in debt-servicing ratios (it is currently not included.)
- CMHC reforms – no insurance for mortgages on houses selling for more than $1 million
These changes will bring down the prices across Canada. Hope you didn't buy a house recently planning to flip it.