Potential changes in Canadian mortgage lending...

On March 4^th, many in the industry expect the Finance Minister to announce changes to mortgage lending regulations.  Possible changes include:

·         increasing minimum down payment from 5% to 10%;

·         decreasing maximum amortization from 35 years to 30 years;

·         amending method to qualify variable rate mortgage clients.

These changes are significant for most first time buyers planning to enter the market.  In the past, policy changes have not been effective immediately; however, lenders will often change their guidelines before the government deadline.

I’ve attached a few recent articles regarding these possible changes:

http://www.theglobeandmail.com/report-on-business/big-six-banks-urge-ottawa-to-tighten-mortgage-rules/article1458585/

http://www.theglobeandmail.com/report-on-business/dont-tighten-mortgage-rules-ottawa-urged/article1461723/

http://www.theglobeandmail.com/report-on-business/ottawa-weighs-stricter-mortgage-rules/article1463856/