Wednesday, February 17, 2010

Mortgage qualification changes in Canada

The Bank of Canada announced some changes to the mortgage act in Canada

These changes affect the qualification rules

There are two types of buyers that the bank is attempting to address; buyers purchasing properties more than they can afford and investors flipping properties

The Bank of Canada feels there no definitive signs of a housing bubble , so they are slowing a 'NON' bubble.

How have they tightened the rules:
  • Buyers with less than 20% downpayment must show they can afford a 5 year mortgage
  • Investors must have minimum 20% downpayment

The changes take effect in mid April and some lenders may implement sooner

All the best!

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