New mortgage rules announced for insured mortgages

New Changes to mortgage insurance Rules takes effect April 19th.

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

• 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
• 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
• Non-owner occupied properties(rentals or investment properties) will require a minimum down payment of 20%, this is a change from the minimum 5% down.
  

There were no changes to down payment requirements or length of amortizations for owner-occupied residences.

*picture courtesy of Financial Post