New Mortgage Rules...
New federal financing rules announced today
This morning, the federal government announced the following changes to the rules for government-backed insured mortgages:
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All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term.
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The maximum amount Canadians can withdraw in refinancing their mortgages will be 90 per cent of the value of their homes.
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The government will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
The adjustments take effect April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010.