New Rules Governing Canadian Mortgages
16 February 2010 - Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come in effect on 19 April 2010
1.
All borrowers must meet the standards for a five-year fixed
rate mortgage even if they choose a mortgage with a lower interest rate and
shorter term;
2.
The maximum amount one can withdraw in refinancing their
mortgage will be reduced to 90% from the current 95% of the value of one's
home;
3.
Non-owner occupied properties will require a minimum down
payment of 20%.
There
were no changes to down payment requirements or length of amortizations for
owner-occupied residences.