Tighter mortgage rules begin Monday

Tighter mortgage rules take effect Monday.

It’s part of Ottawa’s attempt to protect the economy by keeping homeowners from getting in over their heads with housing debt.

The maximum amortization period drops from 30 years to 25 years.

And lenders can only issue a home equity loan for a maximum of 80% of a property’s value, down from 85%.

In addition, the federal government is capping the maximum debt ratios for households and limiting government insurance to mortgages on homes with a purchase price of less than $1 million.