New Mortgage Rules for Canadian Residents
The government has put in place some changes on the Canadian mortgage front. The group that is said to likely be the most affected will be those buyers who put a low down payment on their mortgage and are also struggling with additional debt.
Down payments will increase from 5% to 20% for the buyers of investment properties used to flip or generate income. First time home buyers, however, will still be able to put down 5% as long as they have qualified for a five year fixed rate mortgage.
Last month, professionals showed that fixed rate mortgages accounted for 86% of mortgages that were set up in 2009, and 70% of those were for a five year term.
The refinancing of mortgages will change from the previous 95% to 90% for those who wish to use the equity in their home to consolidate additional debt, renovate their home etc.
These new changes will take effect on April 19, 2010. To read more ....