New Canadian mortgage rules effective April 19 2010

Insisting that Canada is not facing a housing bubble, Finance Minister Jim Flaherty announced a tightening on mortgage lending rules, which he says will “help prevent negative trends from developing.”

Effective April 19, 2010 the following changes will take effect.

Home buyers must qualify for their mortgage using the five-year fixed mortgage rate, regardless of the term that they chose to finance their home.

Refinance loans will be limited to ninety percent of a home’s value.

A twenty percent down payment will be required to finance government backed mortgage insurance on investment property.

Do these changes go far enough to cool the Canadian housing market?

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Norm Fisher
Royal LePage Vidorra

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