Amanda Maxwell
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Flaherty Toughens Mortgage Rules!

Updated Tuesday, February 16, 2010  ::  Views (975)

I just read an article about our Finance Minister, Jim Flaherty, tightening mortgage rules.  This is not anything to be concerned about, it makes sense and is more of a protective measure then anything else.  The first things they are doing is making sure buyers get qualified at fixed term rates, which is something most lending institutions already do.  The second is they're lowering the amound of money that can be withdrawn when refinancing going from 95% to 90%, which I think is benficial because it is something that would protect the home owner in the even they needed to sell their home.  Lastly, there is now a required minimum of 20% down payment to qualify for CMHC insurance for non-owner-occupied properties purchased as an investment.

There was talk earlier in the year about changing the maxium amortization from 35 to 30 years and increasing the minimum down payment from 5% to a higher figure.  None of this has changed, itn still remains the same.

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