You’ve probably read about the new regulations regarding Canadian mortgages for buyers/ investors and home owners wanting to re-finance. In case you haven’t been following, here is the scoop.
Three changes will come in effect on April 19:
- Qualification: All borrowers will need to meet standards for five-year fixed-rate mortgages regardless of whether they’re seeking a loan with a lower rate and shorter term.
- Refinancing: The government is lowering the maximum amount Canadians can withdraw when refinancing a home to 90% of its value, from the current 95%.
- Speculation: It will be required a 20% down payment for government-backed mortgage insurance on “speculative” investment properties. As opposed to 5% down-payment for investments not occupied by the owner.
I’ve posted a list of articles written by the media. You can also check out The Canadian Mortgage Trends for an interesting and detailed post.
Posted by: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 
Not sure what the Finance Minister is doing… He should of just tuned the system not done a major reworking of the system. Do you think it will slow down the housing market?
Nice blog, thanks for sharing. These point are very helpful for those looking to buy a new property. Although I feel a 20% down payment for government-backed mortgage insurance is rather steep. Surely this will put some people of buying?
good information for all first time home buyers to look over. Because intereste rate are so low here in Toronto, people are scrambling to buy whatever they can without always considering the details.
I hope these changes will help us out in the long run.
I am seeing more First – Time Buyers wanting to wait for the rates to increase in hopes that this will cause prices to soften.
Very informative post! Now we don't need 20% if we are buying a home to live in. The 20% rule applies to non-owner-occupied properties. This is meant to prevent people from speculating beyond their means. If someone is going to live in the home, the only rule that really effects for him/her is the requirement to qualify at the five year rate regardless of what term he/she are going for. Most responsible banks and credit unions have already been practicing this rule anyway when lending to their members. Now minimum 5% will be enough for them.
I really agree this blog. I am a new house buyer this information help me.Thanks.