High Ratio Mortgage Changes

As of October 15th we are going to see some changes to the mortgage system here is the Canada.  In Ottawa today the government has stated that it will reduce the maximum amortization to 35 years from 40 and also has removed the 100% finance option with a maximum of 95%.  Additionally the ratio of income to debt that will be consider is now 45%.

How will this affect the industry?  I think that overall it is a good thing for the market.  It will allow the industry to avoid what has happened in the US.  I know when this first starts it will cause alot of first buyers to stop there search for a few years until they can save what they need in order to buy.  At the end of it all this is a really good thing for the Canadian Housing Marke

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