In a surprise move, the Government of Canada announced today that it was
tightening mortgage insurance rules for the fourth time in four years. In
total, four new measures were announced for new government-backed insured
mortgages.

The maximum amortization period was lowered from 30 years to 25 years.

The maximum amount that Canadians can borrow when refinancing their homes
was lowered to 80% from 85% of the value of their homes.

Households are now being constrained to a maximum gross debt service ratio
and maximum total debt service ratios of 39% and 44%, respectively.

Government-backed insured mortgages will now be only available on homes with
a purchase price of less than $1 million.