Effective March 18th, 2011 it will become harder for Canadians to purchase a home or consolidate debt by refinancing.

The new mortgage rules:

* Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

* 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.

* Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs, which will come into force April 18, 2011

Click here to view the press release