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A house for sale in Bridgetown, N.S.

PAUL DARROW/The Globe and Mail

Ottawa is reducing the maximum mortgage amortization period to 25 years from 30 years, and the maximum amount of equity homeowners can take out of their homes in a refinancing is being reduced to 80 per cent from 85 per cent.

In addition, government-backed mortgages will be limited to homes sold for less than $1-million, the maximum gross debt service ratio will be fixed at 39 per cent and the maximum total debt service ratio at 44 per cent.

The changes take effect on July 9. What will they mean for borrowers and home buyers?

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Personal finance columnist Rob Carrick and business reporter Richard Blackwell took reader questions in a live chat.

Mobile users can read the discussion here.

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