Tighter Mortgage Lending Standards Coming in April

Finance Minister Jim Flaherty has announced tighter lending standards for mortgages to be in effect April. The two major changes are:

• Canadians can withdraw when refinancing to 90 per cent of the value of their homes, from the current 95 per cent.
• Canadians will need to meet standards for five-year fixed-rate mortgages regardless of whether they’re seeking a loan with a lower rate and shorter term.

Flaherty stressed that the housing market is healthy and that these changes are proactive to prevent negative trends from developing.

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