As we expected, it appears government pressure on the banks will result in all mortgage amortizations being capped at 30 years [not just high ratio mortgages]. This restriction that will affect certain buyers may mean they want to purchase and have offer accepted before the Mar 18 purchase/approval deadline.
Although not all the banks have announced the 30 year amortization, it appears the government has pushed all banks on the decision and everyone will be on board Mar 18.
"BMO, Laurentian Bank, Scotiabank and TD" have all confirmed that, effective March 18, they will restrict both high- and low-ratio mortgages to 30-year maximum amortization (even though the government's new rules only require that high ratio amortizations be limited to 30 years). CIBC and ING Direct haven't issued a verdict yet.
As for RBC, it too says, "We have not made a final decision on whether we will offer 35-year amortizations on conventional mortgages."
Below is previous announcement re government decision:-
http://www.theglobeandmail.com/report-on-business/economy/housing/ottawa-to-tighten-mortgage-rules/article1872323/
1. 35 year amortizations eliminated;
2. Refinancing reduced to 85% from 90%
3. Restrictions on mortgage insurance coverage for Home Equity Lines of Credit
Similar to the last series of changes these are targeted, the news could have been worse. No changes to 5% down payment. CAAMP in discussions with Ottawa suggested that the market was working and that previous changes were mitigating risk. If the government needed to make changes, suggestions were made to focus on refinancing, and not origination which is what they are doing for two of the three measures. They will become effective in 60 days.
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