The government has done it again…Making mortgage financing a bit more tougher for Canadians.

Well if you have not heard yet…the Canadian government has done it again. They have made it a bit more tougher for mortgage financing. But as in all itmes you read and are afective by you must take the pros and cons on everything.

In a nutshell this is what I got and know of and what has happened:


The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

  • Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
  • Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
  • Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework 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.


I see where it is stating this is for the good of the consumer but I must point out something. If the government was really concerned about the borrowing and debt load cost then sould it not been better to tighten the credit card,,pay day loan,,and finance companies what they charge for their services. A mortgage is the most valuable to a consumer because it is for their and their families roof. I think these measures are okay slightly but it is going to make it tougher for people looking to use the equity for real needed reasons and also for the people trying to buy their first home or possibly go into a bigger home as their family has grown. All in all who does this really benefit?

We at Networth Mortgage Centre are here for the consumer and if you would like to discuss your situation we have come up with a program that will help by helping you get the best program for your needs. Feel free to contact us by email at or call us or visit our website at for valuable updated information for you.

Here is our rates for your information:

i year fixed 2.75%…2 year fixed 3.20%…3 year fixed 2.99%…4 year fixed 3.69%…5 year fixed as low as 3.40%…5 year fixed purchase mortgage 3.29% when you buy through our approved real estate prfessional…6 year fixed 4.65%…7 year fixed 4.74%…10 year fixed 5.15%.

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