Minimum down payment expected to increase

While there has been a lot of speculation that the Department of Finance would implement legislation to increase the minimum down payment from five to ten percent of a home’s value, it did not happen. Instead, they announced on Tuesday, the following changes that will be implemented on April 19, 2010:

1. All borrowers must be able to qualify for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term.

2. The maximum amount that a homeowner can withdraw when refinancing their mortgage has been reduced from 95 percent to 90 percent.

3. Anyone purchasing a home as an investment (non-owner-occupied properties) is required to pay a minimum down payment of 20 percent.

One Response to “Minimum down payment expected to increase”

  1. Shawn

    They might loss sale this year if they continue to increase their downpayment prices.

    Reply

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