Kitchener Homes for sale -New Mortgage Rules For Real Estate Investment
If you are a new or active real estate investor the announcement this morning from Finance Minister Jim Flaherty will have an effect on how you qualify and purchase property. In a release this morning he is making 3 significant changes to Mortgage insurance rules:
1. Variable mortgages qualified at five year fixed rate;
2. Refinancing limited to 90% instead of 95%;
3. Non owner occupied residences require 20% down payment;
“There is no clear evidence of a housing bubble, but we’re taking a proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it.” Say’s Flaherty.
So what does all that mean? Well as of April 19th these new rules will affect buying a home and more specifically investment property. Flaherty said that it is not meant to focus on investment property but speculators out there that are in multiple condo developments. I believe that this will help tighten the requirements so that people don’t get in over their head and over leveraged in the event that rates start to creep up.
I understand that you can still take advantage of the current structure until April 19th so give me a call to discuss if you have any questions.
Click hear to watch my video on the changes to the rules
This entry was posted on February 16, 2010 by kevinbakerrealestate. It was filed under Buyers, Sellers and was tagged with home buying, Kitchener waterloo, Mortgage News, Mortgage Rates, real estate investing.