Friday, April 30, 2010
New Rules for First Time Buyers
Stefania Moretti with QMI Agency reported recently that Tighter lending rules and rising interest rates means Canadians looking to buy their first home may face an uphill battle. New government-backed mortgage lending rules aimed at protecting Canadians from getting in over their heads with debt once rates comes off historic lows came into effect just recently. All homeowners must now qualify for a five year fixed mortgage rate, even if they are choosing a shorter term product. Other new rules on mortgage lending include higher minimum down payments on investment properties,lower refinancing maximums and eligibility changes related to the stated income program. Also self employed Canadians are only eligible for the program during their first three years of business. there is also the HST coming in July that will increase costs slighlty.