Canadian Government Tighten Mortgage Financing Rule

Welcome to my blog, today is February 16th, 2010

Here is the latest mortgage regulation that you should know! the rules for government-backed insured mortgages will be adjusted and be taken effect on April 19, 2010,:

* All variable rate mortgage will be qualified on a 5 year fixed rate. It means that the buyers have to 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 will prepare Canadians for higher interest rates in the future.

* Lowering the maximum amount Canadians can withdraw in refinancing their mortgages from 95 per cent to 90 per cent of the value of their homes.

* Requiring a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for investment purpose.

Category:

People & Blogs

Tags:

• Mortgage
• Toronto Real Estate
• Tighten Regulation