Blog Article

More New Mortgage Rules in 2011???

In 2010, the government introduced new rules for mortgages needing default insurance. These rules were stricter than previously and made it more difficult for buyers to purchase properties. Those new rules were:

– Qualifying mortgages at the higher rate of the contract rate or 5-year Bank of Canada posted rate (regardless of the mortgage product).

– Self-employed using a stated income program now had to put 10% down for a purchase and 15% for a refinance.

– Non-owner occupied investment properties needed a 20% down payment for purchases.

The government has hinted that they may introduce stricter rules in 2011, to help protect the real estate and real estate finance markets. So although demand for real estate in 2011 is predicted to remain strong, getting financing may prove to be a struggle for some potential buyers.

Posted by Kevin Somnauth, CFA
Sudbury Mortgage Brokers (http://sudburymortgagebrokers.com)

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