The federal government has introduced new rules that will make mortgage qualifications more stringent for many homebuyers. As of April 19th 2010,
* Homebuyers must meet the qualification criteria for a 5-year fixed-rate mortgage, even if they are pursuing a shorter term or variable rate mortgage. Speak to your mortgage provider on precisely how this will influence your purchasing power.
* Require a minimum 20% down payment for any CMHC-insured non-owner occupied property "purchased for speculation"
* Lower the maximum permissable refinance ratio to 90% of home value, down from 95%
The primary goal of these measures is to help protect homeowners against an upswing in mortgage rates, expected to come as early as this Summer.
