March 4, 2010

Further to the recent insurance guideline announcement, mortgage lending rules are tightened effective April 19, 2010.

Key interest to Canadian mortgage lenders is the “definition of the five-year standard rate used for mortgage qualifying”. The government is currently working on that definition, once those details are confirmed, it will be posted here on this blog.

The changes being implemented are prudent and will ensure long term stability in the real estate market. The changes are:

  1. All borrowers must meet the standard for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term;
  2. Read more