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There are three changes: The maximum number of years Canada Mortgage and Housing Corp. will insure a mortgage will be lowered to 30 years from 35 years; the maximum amount Canadians can refinance their homes will go from 90% to 85%, and; CMHC will no longer insure home equity lines of credit.

(If you are of the mind to apply for a mortgage or refinancing before the new rules take effect, the first two changes come into law March 18, 2011 and the third April 18, 2011).

The changes are targeted at high-risk mortgage takers, but will have an effect on everyone.

For Example:
"On a standard $250,000 mortgage, at today’s discounted mortgage broker rates of 3.99% for a five-year fixed mortgage, payments increase from $1,100 a month for the 35-year amortization to $1,187 a month for the 30-year amortization," says Herman.

"An employee on a $50,000 salary (at the same rate and term, using $1,200-a-year property tax and $100 a month for heat) now only qualifies for a maximum mortgage of $238,620 on the 30-year amortization. On the 35-year, they used to qualify for $257,451.

The new regulations should not affect purchasing deals currently in the works.

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