2008 is shaping up to be the year for change in Real Estate. June 23rd, 2008 marked a significant change to real estate business.
A new federal law came into force, real estate agents will ask to see your driver's licence, or other government-issued ID. They'll also need to keep personal information identifying their clients, such as occupation and birth-date, on file for five years and write reports anytime money changes hands during a real estate deal.
The extra steps are part of legislation cracking down on money laundering, fraud and terrorist financing. The new regulations bring Canada in line with international standards set by the Financial Action Task Force, created by the Group of Eight industrialized countries.
The Government of Canada announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include:
- Fixing the maximum amortization period for new government-backed mortgages to 35 years;
- Requiring a minimum down payment of five per cent for new government-backed mortgages;
- Establishing a consistent minimum credit score requirement; and
- Introducing new loan documentation standards
The new limits are planned to take effect October 15, 2008. The changes are aimed to reduce the risk of a U.S.-style housing bubble developing in Canada.
Your Friend in Real Estate,