Canada's New Mortgage Rules
New mortgage rules
Last Monday, April 19th, 2010, the Mortgage Rules in Canada were signifcantly changed. The following is a basic list of the changes that were made.
"Recent changes to Canada’s mortgage rules announced by the Minister of Finance, the Honourable
Jim Flaherty, will take effect April 19, 2010.
The changes have three different components:
• Requiring that all borrowers meet the standards for a five-year fixed rate mortgage even if they
choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
• Lowering the maximum amount Canadians can withdraw in refinancing their mortgages to
90 per cent from 95 per cent of the value of their homes. This will help ensure homeownership is a more effective way to save.
• Requiring a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
For more information, visit the Department of Finance Canada"
http://www.fin.gc.ca/n10/10-011-eng.asp*Information in this article was obtained from www. orea.com Queens Park Plus monthly paper.