As everyone has been expecting, the federal government has reduced the maximum amortization period for mortgages third time in four years. Starting on July 9th, the maximum amortization period will be reduced from 30 to 25 years.
In an effort to continue to battle high household debt ratio, Ottawa will also lower the amount buyers can borrow against their homes to 80% of their value, down from 85%. The new rules will also mean that buyers can spend no more than 39% of their gross household income on their homes, and 44% of income on housing plus servicing other debts.
We expect an increase of real estate activity before the new rules kick in on July 9th. This is the time when hiring a skillful, trustworthy and experienced real estate agent and mortgage broker becomes ever more important. They should be able to help you navigate the changing mortgage landscape. Fortunately, you can rely on our great repertoire of real estate agent reviews and mortgage broker reviews to help you find the right professionals here in Toronto.