How is buying a home in Canada changing?

If you are planning to buy a home or re-finance your home in Canada, you have two more days before the new mortgage rules take effect. Canadians debt to income ratio sky rocketed to over 150% in the last quarter of 2011. In an effort to reduce that number, the Canadian Government has made several changes to mortgage lending rules. As of July 9th, the maximum amortization period for mortgages will be lowered to 25 years from 30. This will increase homeowners monthly payment, but reduce the overall interest paid on the life of the mortgage. The Gross Debt Ration (housing costs) will also be capped at 39% of household income. There has not been any change to the first time home buyer down payment of 5% but the amortization and ratio cap will certainly reduce the mortgage amount first time home buyers will be able to secure. And if your looking to refinance your home, the maximum amount has been lowered to 80% of your home's value, down from 85%.  Certainly these new rules will benefit both banks and homeowners and when I look to the devastation the housing market has gone through in the States, maybe we do need someone to save us from biting off more than we can chew.