The government of Canada is implementing three changes to mortgage rules in order to protect the housing market from a bubble.
Check out these three changes:
1. All borrowers required meet specifics standards for a five-year fixed rate mortgage.. even if they pick a mortgage for a shorter term or with a variable rate.
2. The maximum amount Canadians can withdraw when refinancing mortgages has been lowered, to 90 per cent from 95 per cent of the value of their home.
3. A minimum down payment of 20 per cent for government-backed mortgage insurance on homes that aren’t occupied by the owner is now required.
Finance minister Jim Flaherty described the housing market as “healthy and stable” and said that the government’s early action can help prevent negative trends from happening.
Yossi Kaplan, MBA
Sales Representative, Your Choice Realty Corp
885 Don Mills Rd suite 104