HOMES IN TORONTO FOR SALE
September 9th, 2010 
VERONICA KEY
Broker

416-785-1500
Visit me on Facebook
Visit my blog
KEY NEWS BLOG
KEY TO REAL ESTATE
BACK TO BLOG
CHANGES TO MORTGAGE INSURANCE RULES
Tuesday, 16 February 2010, 11:00:20 AM
As you may have heard this morning, Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules intended to come into force on April 19, 2010, as follows;

1. 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.

2. 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 – Very rarely will a 95% refinance situation come into play.


3. Non-owner occupied properties will require a minimum down payment of 20% - To avoid additional costs i.e. premiums, most clients have 25% for down payment on Income properties. If a client only has 20% for down payment, the premium that CMHC charges is 2.5%. All income property qualifications are based on 25 year amortization. This has not changed.

4. There were not any changes to down payment requirements or amortization for owner occupied properties.
Leave your comment here
From:
Anonymous user
Registered user
Email:  Password:  
Subject:  
Your Comment:  
Post Comment
admin listings buying selling privacy policy contact site map