What do the new mortgage rules mean?

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Ottawa is targeting rising household debt with three new rules for those who seek and provide mortgages. What do the changes mean for the average home owner - for you?

First, the new rules will reduce the maximum amortization period to 30 years from 35 years for government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

Second, Ottawa will lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes.

And third, Ottawa will withdraw government insurance backing on lines of credit secured by homes.

Personal finance expert Rob Carrick was here to discuss what to expect as the changes kick in. For a transcript of the discussion, click on the Cover it Live box below. Mobile readers can read it by clicking here.