So the canadian government came out today and made some changes to the qualifications of mortgages in canada. The following changes are what were passed.
· Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term.
· Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes.
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," Minister Flaherty said in a press release.
These changes may effect the home new buyers will be able to afford! These mortgage changes will come into effect starting april 1st.
These changes will push our housing market into a frenzy for buyers to purchase before the april 1st effective date.
The time to buy is now!
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By Sean jordan @ One Percent Realty