New Rules to Come into Force April 19th, 2010 Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules this morning, which are set to come into force on April 19th, 2010. This means the government will adjust the rules for government-backed insured mortgages as follows:
- Require 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.
- Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90% from 95% of the value of their homes. This will help ensure home ownership is a more effective way to save.
- Require a minimum down payment of 20% for government-backed mortgage insurance on non-owner-occupied properties.
There were no changes to down payment requirements or length of amortizations for owner-occupied residences. Click here for additional details on the changes. Your DLC Head Office Team