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.