This week, there has been a lot of hype around the changes that the Honourable Jim Flaherty, Minister of Finance made to the mortgage rules. But what does it mean to you and your home ownership strategy?
Don breaks down the following 3 changes (taken from the Government of Canada website):
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. This initiative will help Canadians prepare for higher interest rates in the future.
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. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
If you have any further questions, please contact one of our mortgage experts at 416.480.0234.