MORTGAGE INSURANCE RULES ANNOUNCEMENT
NEW MORTGAGE RULES IN CANADA
This morning the Federal Finance Minister announced changes to
mortgage insurance rules. The following changes will come into force
on April 19, 2010. Here's the rundown:
* All borrowers will need 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;
* The maximum amount a client can withdraw in refinancing their
mortgage will be reduced to 90% from the current 95% of the value of
one's home;
* Non-owner occupied properties ( investment properties ) will require
a minimum down payment of 20%.
There will be no changes to down payment requirements or length of
amortizations for owner-occupied residences.
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