Canadians today face many reasons to refinance their mortgage. For example, you may have been working at improving your credit score and now qualify for a new mortgage with a better discount, or you may want to stabilize your payments by changing from a variable rate mortgage to a fixed-rate. Refinancing is also a good option to pull out equity for consolidating debt, home improvements, investments, college expenses, and more.

As you may have heard the Federal Government has announced some further mortgage changes for insured mortgages on January 17th, 2011.  Here is a quick summary of the changes and when they will take effect.  I will also do a commentary in a separate e-mail about these changes.

Mortgages with amortization periods longer than 30 years will no longer qualify for government-backed mortgage insurance, which is required for buyers with less than a 20% down payment on a home. The previous limit was 35 years.

• Maximum amount Canadians can borrow against the value of their homes, lowered to 85% from 90% on a refinancing

• Federal government backing for home equity lines of credit, or so-called HELOCs, is removed

• Adjustments on amortization and refinancing limits coming into force on March 18.

• Government backing on HELOCs will be removed as of April 18

Read more: http://www.financialpost.com/personal-finance/mortgage+changes/4119542/story.html#ixzz1BIjY4HCG