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| VERONICA KEY
Broker
416-785-1500 |
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KEY TO REAL ESTATE |
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| Posted on Tue, 16 Feb 2010, 11:00:20 AM in Home buying tips | | 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.
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