3 Major Changes to Mortgage Lending

A summary of the new changes introduced this morning by Finance Minister Jim Flaherty, to come into effect April 19th, 2010 are as follows:

1. Borrowers must meet the standards for a 5 year fixed rate mortgage even if they are choosing to sign onto a mortgage with a shorter term and lower rate.

2. When re-financing your home, you may only take out up to 90% of the equity instead of 95%.

3. A minimum down payment of 20% required for non-owner occupied properties.

Surprisingly to some, there were actually no changes to the minimum down payment as was previously hinted at. The current minimum down payment remains at 5%. The maximum amortization has remained at 35 years, also with no change.