New Mortgage Refiancing Regulations
In Canada, the CMHC is about to make changes to their mortgage insurance policy with respect to mortgage refinancing.
Previously, a morgage refinancing could not be higher than 95% of the property value for the property being mortgaged. With the new legislation, the most an insured mortgage can be for a refinancing is 90%.
This measure was one of three proposed to help to reduce what many fear is the formation of a real estate bubble in Canada that is being fed by low interest rates and high ratio insured mortgages provided by the government’s own mortgage insurance program administered by the CMHC.
