BuzzBuzzHome Corp.
February 16, 2010

Canada is implementing three changes to mortgage rules that will help protect the housing market in an effort to reduce the risk of a housing bubble in Canada Finance Minister Jim Flaherty said Tuesday.

Check out these three changes:

1. all borrowers are required to meet specifics standards for a five-year fixed rate mortgage.. even if they pick a mortgage for a shorter term or with a variable rate;

2. the maximum amount Canadians can withdraw when refinancing mortgages has been lowered, to 90 per cent from 95 per cent of the value of their home; and,

3. a minimum down payment of 20 per cent for government-backed mortgage insurance on homes that aren’t occupied by the owner is now required.

Flaherty described the housing market as “healthy and stable” and said that the government’s early action can help prevent negative trends from happening.

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