Recent changes to Canada’s mortgage rules announced by the Minister of Finance, the Honourable
Jim Flaherty, will take effect April 19, 2010.
The changes have three different components:
• Requiring that all borrowers 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 initiative 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 homeownership
is a more effective way to save.
• Requiring a minimum down payment of 20 per cent for government-backed mortgage insurance
on non-owner-occupied properties purchased for speculation.
For more information, visit the Department of Finance Canada’s website.
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