Monday, July 21, 2008

Government of Canada Moves to Protect, Strengthen Canadian Housing Market

On July 9, 2008 the Government of Canada announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include:

  • Fixing the maximum amortization period for new government-backed mortgages to 35 years;
  • Requiring a minimum down payment of five per cent for new government-backed mortgages;
  • Establishing a consistent minimum credit score requirement; and
  • Introducing new loan documentation standards.

Today’s announcement marks a responsible and measured approach by the Government to ensure Canada’s housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada.

Read more here: http://www.fin.gc.ca/news08/08-051e.html

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