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Buying A Home In Wasaga Beach. Borrowing Money Has Just Got Harder

If you are thinking of buying a home in Wasaga Beach, Finance Minister Jim Flaherty has tightened the mortgage rules

In response to the growing concerns that Canada’s housing market is overheating the Finance Minister says all borrowers will need to meet stiffer criteria to take out mortgages.

However he stated:

“There’s no compelling evidence of a housing bubble, but we’re taking proactive, prudent, measured and cautious steps today to help prevent a housing bubble,”

From April 19th this year:

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;
3. Non-owner occupied properties will require a minimum down payment of 20%.

There were no changes to down payment requirements or length of amortizations for owner-occupied residences.

I have checked and any mortgages already approved  or are approved before April 19th but have a closing after that date will not be liable to the new rules and still valid.

This entry was posted on Wednesday, February 17th, 2010 at 8:22 am and is filed under Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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