New Mortgage Rules for Canada in 2010
May 20, 2010
Three new rules for government-backed mortgages came into effect on April 19. Minister of Finance Jim Flaherty announced that the rules were designed to support stability within Canada's housing market. Here is what you need to know:
Canada-backed Mortgage Rules 2010
- Borrowers will be required to pay back loans on five year fixed-rate mortgages, regardless of whether they choose three-year fixed or variable terms.
- The maximum amount borrowers can draw from the equity of their homes when refinancing has been lowered to 90% from 95%.
- The minimum down payment requirement will be 20% on non-owner-occupied homes.