New changes to mortgage insurance rules for purchasing revenue property
MORTGAGE INSURANCE RULES ANNOUNCEMENT
Thinking about purchasing a revenue property? Now is the time!
This morning, Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. CAAMP was actively engaged in the discussions around these changes which are as follows:
- 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; this then will make it even MORE important that they qualify then on BROKER rates not posted rates.
- 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; So, if you have clients wanting to refinance to purchase a second/another property, they cannot pull 95% of the value any longer.
- Non-owner occupied properties will require a minimum down payment of 20%. No more high ratio financing for rental properties.
There were no changes to down payment requirements or length of amortizations for owner-occupied residences.
For further details click on the link below
http://www.reddeerrealestateexperts.com/HomesAuthenticated.aspx?tabid=2336742&response=ed03a257-4907-4cb9-91a0-77afd77b86a9