The New Canadain Mortgage Rules


Well Jim Flaherty finally brought the hammer down to burst the real estate bubble, a bubble he really did not feel was there despite pressure from the banks and mortgage lenders.  At the end of the day the new rules are sensible and conservative…hmm how Canadian.

Rule #1 to qualify for any mortgage you must meet the criteria for a 5 year fixed term mortgage, even if you are taking a different kind of mortgage.

Rule #2 when refinancing your home you need to leave at least 10% equity, before you only had to leave 5%.

Rule #3 to purchase an income, investment, or speculative property that you are not living in, or going to live in you must put down 20%.

You can get more information by visiting:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20100216/speculators_flaherty_100216/20100216?hub=TopStoriesV2
or

http://network.nationalpost.com/np/blogs/fpposted/archive/2010/02/16/how-the-new-mortgage-rules-break-down.aspx

My Views: these are great changes that only shifted a small portion of potential buyers out of the real estate market and they probably should not have been buying anyways.

Cheers

Real Estate Dave

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s