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If you’re looking towards a mortgage refinancing action to get you out of credit card hell and get your cash flow back on track, there have been some recent changes to the insured mortgage programs in Canada that you should be aware of.

Debt consolidation up to this point was possible up to 95% of the property value.  But in April, 2010, that will be reduced to 90% for insured mortgage products in Canada.

And not only will it be a reduction in the total amount of leverage, but the repayment calculation now will need to be based on the 5 year fixed rate, not the 3 year fixed rate that has been used up until now.  There needs to be some clarification as to what the fixed rate is for different lenders as many mortgage companies don’t even have a posted rate.

If you are looking for bad credit consolidation mortgage, this will not impact you as you will not be able qualify for an insured mortgage due to their requirements of having at least a 650 beacon or fico score.

With the interest being as low as they are, it still makes a lot of sense to refinance if you can.

The best approach to understand the new rules and to get the best option is to work with a canadian mortgage broker that has a focus on mortgage refinance applications. 

For these types of applications, the lenders tend to cover the mortgage costs, so there is no reason not to utilize the expertise of a good broker.