Canadian Mortgages, Insurance, Investment, Tax Planning

Newsroom

Revenu Québec - Tax News

XE Forex News

Canadian Mortgage Broker news

Tuesday, February 16, 2010

Changes to Mortgage Insurance Rules




MORTGAGE INSURANCE RULES ANNOUNCEMENT

This morning, Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. CAAMP was actively engaged in the discussions around these changes which are as follows:
  1. 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;
  2. 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;
  3. Non-owner occupied properties will require a minimum down payment of 20%.
There were no changes to down payment requirements or length of amortizations for owner-occupied residences.

CAAMP will continue to monitor developments including transition rules.
For additional details on the changes - click here

You are subscribed to this newsletter as you are listed on our distribution list. Please click here to modify your language preferences or to unsubscribe from any future mailings. We will respect all unsubscribe requests.

No comments:

Post a Comment