The new mortgage rules and what they mean for homebuyers

The Honourable Jim Flaherty, Minister of Finance, announced on February 16th a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage homeownership for Canadians.

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.

Ask your mortgage professional for a Genworth-insured mortgage today,
or call 1-800-511-8888


	The new mortgage rules and what they mean for homebuyers
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