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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.