New Mortgage Rules Take Effect April 19, 2010
Recent changes to Canada's mortgage rules announcedby the Minister of Finance, the Honourable Jim Flaherty, will take affect April 19, 2010.
The changes are:
- Requiring that all borrowers meet the standards for a 5 year fixed rate mortgage even if they choose a mortgage with a lowere interest rate and a shorter term. This 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 that homeownership is a more effective way to save.
- Requiring a minimum of 20 per cent down for government-backed mortgage insurance on non-owner-occupied properties purchased for specualtion.
For more infomation, visit the Department of Finance Canada's website.
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