Tuesday, February 16, 2010

Mortgage Rules Change



This morning Jim Flaharety , the finance minister, changed the rules for obtaining a mortgage. He wants to make it more difficult for people to buy a home and to discourage people buying revenue properties. Here are the 3 new rules


  • 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;
  • The maximum amount one 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 will require a minimum down payment of 20%
  • What do you think about the new rules?
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