GREAT NEWS ALL AROUND!! The government of Canada has made significant changes to Mortgage Insurance rules, as announced on February 16th, 2010 by the Honourable Jim Flaherty, Federal Minister of Finance. 

The following are intended to come into force as of April 19th, 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 or shorter term
• Borrowers may only refinance a maximum of 90% of the value of their home, down from the original 95%
• Non-owner occupied properties will now require a minimum downpayment of 20%

Why is this great news?? Well firstly, these changes do not affect our current 5% downpayment status or the amortization periods on owner occupied properties. More importantly, this is one more step our government is taking to protect our market from a downfall similar to that of the United States.