Shana Fellows
Sales Representative
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Government Takes Action ! New Financing Rules

Updated Thursday, February 18, 2010  ::  Views (2563)

Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010:

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.

So the Biggest change is the down payment required for those looking to purchase non-owner occupied (ie Rentals) houses on spec.

Please feel free to call or email me if you have any questions!

Shana Fellows
Sales Representative
Office: 519.336.EXIT
Cell: 519.381.3937

Email: shana@exitsarnia.com

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