The Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010.  These changes are as follows:

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.

While these changes were not dramatic, they will still effect the odd borrower who will have to come up with a little more money to buy the house they want.  Although, the 80% rental rule will pose a problem to those wanting to invest in rental properties.  Please feel free to call and discuss!