To avoid the new mortgage rules, buy before July 9!

The Canadian government has announced plans to further tighten lending conditions for Canadian home buyers.

These changes include cutting amortization periods from 30-years to 25-years and limiting refinancing loans from 85 percent of the value of a home to 80 percent.

Most banks have stated that they will honor their current offers until July 9 when the changes come into effect.

Speaking earlier today, Finance Minister Jim Flaherty had said that the changes would affect less than 5% of home buyers.

“I remain concerned about parts of the Canadian residential real estate market, particularly in Toronto, but not only in Toronto. We need to calm the condo market in a few Canadian cities,” Flaherty had said Thursday.

Today’s announcement will have the greatest impact on the new, small condominium residences that are currently popular with first-time buyers and foreign investors.

Watch the video for further details.