Announced July 9, 2008; the federal government is tightening the reigns on mortgage lending. Industry response is mixed, with some experts saying it is the right thing to do for the economy and for home purchasers, while other experts say that Canadian lending institutions are being unnecessarily punished for what has happened south of the border.
Essentially, the changes are as follows: As of October 15, 2008 a minimum 5% down payment will be required to purchase a home. As well, 40 year amortizations will be abolished, making the maximum amount of time to finance a home 35 years.
If you have any questions with regards to these announcements or would like further information regarding the availability of mortgage financing please call me direct or e-mail. If you were considering purchasing a home with 100% financing you still have time to do so if you act quickly.
Thanks to Nick L'Ecuyer of the Mortgage Centre and Scott McKinnon of Scotiabank for constantly keeping me informed of the changes to the Mortgage Industry.