There have been changes introduced affecting all new HELOCs (home equity line of credits) this week. On September 10, 2012 the maximum loan to value on HELOCs at all financial institutions and banks will be following the new rules listed below.

The LTV maximum is now 65% LTV - or 65% of the value of your home
The combined maximum LTV is 80% for an amortizing 1st and an HELOC 2nd
These rules take effect on September 10, 2012

According to Mark Herman, mortgage broker at Mortgage Alliance, interest rates are extremely low right now and the Bank of Canada is planning to increase these rates once the recession has ended in order to handle expected inflation. Right now this plan has been delayed by the Canadian and US Central banks but you can be sure that it’s coming soon.

If you're considering a home purchase in the near future it's time to get these rates locked in with a pre-approval from your bank to get your mortgage at these rates. It's also the best time to roll any of your current debts into your mortgage. It won't be long before mortgage rates start to spiral upwards from these historic lows once the recovery becomes more stabilized.

10 year fixed rate mortgages are still available right now for approximately 3.89% while the fixed-rate for a five-year mortgage is about 3.09%.

Now is definitely the time to either re-mortgage or get pre-approved for a mortgage before the rates go up. Once they start rising it will be hard to forecast just exactly how high they will go and how quickly.