CMHC Rule Changes – Refinancing Limit

Theresa’s Soap Box – CMHC Rule Changes – Refinancing Limit

Today we’re going to finish up our series about the CMHC rule changes.  The last topic we are going to cover is the refiniancing limit.  You may know that the refinancing limit will be decreased from 90% to 85% of your home’s value and that takes place March 18, 2011.

What this means for you is that if you are considering refinancing and pulling out some of the funds from the equity of your home then you may be limited in what you think you can draw out.  So if you were planning to renovate, get a car, or anything like that the limit is 85% of your home’s value.  That 85% is going to include your current mortgage balance, so what you still owe on the mortgage, any lines of credit that are secured to the property, and then everything you are trying to take out in excess of that.  All of those things combined now cannot be in excess of 85% of the current value of your property.

If you are looking to purchase a property, don’t worry, you’re still allowed to purchase using only 5% downpayment with CMHC or mortgage loan insurance, however it just means that you will not be allowed to refinance your mortgage in the future until you have paid off a certain amount on your mortgage or your property has appreciated so significantly in value that your mortgage is now less than 85% of the total value of your property.

If you wanted to speak to a mortgage coordinator prior to the deadline (March 18, 2011), give us a call or email us at 1-866-521-9557 or

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