Mortgage rule changes coming into effect April 19

On February 16 Federal Finance Minister Jim Flaherty announced three new rule changes connected to government-backed insured mortgages

1)
requirement that all borrowers be qualified at a five-year fixed mortgage rate even if they choose a shorter-term, lower-interest product( for example if the variable rate is two per cent they have to qualify borrowers at five per cent if that is the current 5 year rate)

2)
lowered the maximum amount Canadians can withdraw in refinancing their mortgages from 95 to 90 per cent

3)
minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties

The new rules come into effect on April 19.

Marlene Ofter

Marlene Ofter

Certified Real Estate Broker
CENTURY 21 Max-Immo
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