Wednesday, 17 February 2010

Changes in mortgage rules will apply April 19, 2010 -won't affect binding agreements made previously

New rules announced by Finance Minister Jim Flaherty apply to government-backed mortgages. These measures will change the following:

  • withdrawal amounts when refinancing

  • require 20% downpayment for government-backed mortgage insurance on non-owner occupied properties

  • the standard required for five-year fixed rate mortgage will apply to all borrowers

"Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010." - Department of Finance Canada

For further information refer to announcement -See Department of Finance Canada

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