New mortgage Rules??? Will it affect you????

Just in from Jim Flaherty….The rules for mortgage financing are changing. this is what he is saying……

Jim Flaherty unveils new mortgage rules

http://www.theglobeandmail.com/report-on-business/economy/jim-flaherty-unveils-new-mortgage-rules/article1469432/       

In a nutshell he has pointed out a few things and in summary this is what I got from the Canadian Association of Mortgage Professionals:

CAAMP was actively engaged in the discussions around these changes which 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.

I am sure this will be tough for some but not for all. If you have any questions or feel like you need more clarification feel free to call me or email your questions.