How do they affect you?

The government changes affect all insured mortgages, so if you are putting less than 20% down, these changes will affect you.

· You must qualify at the benchmark posted rate (currently 4.64%) not the contract rate (which could be as low as 2.44%). The result? You will qualify for less.

· The property value must be less than $1 million dollars.

· Only principal residences qualify as insured mortgages;  mortgages on vacation and investment properties can no longer be high-ratio.

· Refinances no longer qualify as high-ratio mortgages; only purchases can have a mortgage of more than 80% of the value of your property.

These changes affect new mortgages only. When your mortgage comes up for renewal, if you do not add new money to the   principal, your amortization and terms will remain the same - even if you change lenders. Nothing will change except the interest rate.