Canadian Mortgage Trends is saying that changes to HELOC loan to value (LTV) limits are a done deal.
If so this means the maximum HELOC you’ll be able will move from 80% to 65% of the total value of the property.
Read the original link for full details. Many commenters there seem to think this is too big a move.
65% is too much of a leap all at once.
I can’t understand why OSFI doesn’t ratchet the LTV ratio down a little more slowly (i.e., 5% at at a time and sit back to observe the consequences).
As has been noted lately, the previous three sets of mortgage tightening guidelines have been gradually working their way through the credit markets effectively.
You can kill an ant with a hand grenade, but it usually makes a hell of a mess.