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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.

Related posts:

1. Buying A Home In Wasaga Beach? What Can You Afford?
2. The Seven Biggest Mistakes You Want to Avoid When Buying A Home In Wasaga Beach!!
3. The Positive Effect Of Using Other People’s Money To Purchase An Invesment Property
4. How Can I Borrow More Money?
5. Should You Only Put The Minimum Down Payment On A New Home?

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.

1. Confused By Today’s Real Estate Market? So Are The “Experts” | Wasaga Beach Real Estate-Wasaga Beach Homes For Sale-Wasaga Beach News said at April 8th, 2010 at 6:42 pm

   [...] the changes in lending policies introduced by the government last month. Both the government and the banks had been insisting that [...]

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