Mortgages Rules For Canadian Home Buyers To Be Tightened
More On This Topic: Best Mortgage Broker Willoughby Submitted by: Bruce Owens On July 9th, the Department of Finance moved to tighten Canada s mortgages markets by announcing changes to the requirements for federally-backed mortgage insurance. The changes set minimum credit scores that home purchasers must meet to qualify for mortgage insurance on so-called high-ratio mortgages while restricting amortization terms to 35 years and requiring a minimum 5% down payment on mortgages insured through the Canadian Mortgage and Housing Corporation (CMHC) or other government-backed private mortgage insurers. The tightening of Canada s mortgage insurance rules, which will take effect on October 15th, is widely seen as a measure to further tighten Canadian mortgages market and forestall the credit problems that have crippled the U.S housing market. In announcing the changes, the Department of Finance characterized them as a responsible and measured approach by the government to ensure Canada’s housing market…