New Rules Governing Canadian Mortgages

Rick Preisinger, Sales Representative — Wed, 17 Feb 2010 15:59:00 GMT

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.

Trenton / Quinte Homefinder Real Estate Blog

New Rules Governing Canadian Mortgages