Ontario Home Buyers Facing New Rules

This morning, Federal Finance Minister Jim Flaherty announced three key changes to mortgage insurance rules:

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.

These rules are intended to come into force on April 19, 2010. I will keep you updated on any changes. Regards,

Asif

Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

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