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Lenders Start Enforcing New Rules

gavel Just days after the federal government announced the coming end of 100% financing and 40-year amortizations (for government insured mortgages), lenders have begun axing these products. 

ING, BMO and CIBC (including FirstLine) were among the first to act.  These lenders announced the end of 40-year amortizations effective immediately. 

Other lenders, like Merix, have stated they’d keep offering 100% financing and 40-year amortizations.

The official end to insured mortgages with 40-year amortizations and/or nothing down comes October 15, 2008.  The average Canadian will pay $55 a month more with a 35-year am versus a 40-year according to The Star.

If $0-down or 40-year mortgages appeal to you, you need to start mortgage shopping now.  The number of lenders offering these terms will surely shrink before October.