Changes in mortgage requirements….
Good news is that the owner-occupied down payment minimums remains at 5% and amortizations haven’t changed. Changes take effect April 19, 2010. Please see the attached for more details or give me a shout if you have any questions.
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MORTGAGE INSURANCE RULES ANNOUNCEMENT
This morning, Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. CAAMP was actively engaged in the discussions around these changes which are as follows:
- 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;
- 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;
- 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.
CAAMP will continue to monitor developments including transition rules.
For additional details on the changes - click here
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