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Tougher Mortgage Rules to Cut Down Default Risks

Finance Minister Jim Flaherty announced tighter lending standards for mortgages, saying that while the housing market is “healthy” the moves are needed to “help prevent negative trends from developing.”

Here is the summary of the new rules:

All borrowers have to qualify for a mortgage with a 5 year fixed interest rate regardless of whether they’re seeking a loan with a lower interest rate and shorter term Lowering the maximum amount borrowers can refinance up to 90% of the value of their home Minimum 20% down payment for government-backed mortgage insurance on “speculative” investment properties

See full articles from The Globe and Mail and CTV.

 

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Casey Ragan

“Toronto’s Condo Authority”

Toronto Condos and Lofts

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