The Government announced some adjustments to the rules for mortgages as follows:
Reduced the maximum amortization period to 30 years from 35 years for new mortgages.
Lower the Maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% 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 HELOC's. 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.