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?