The Government of Canada recently 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.

For more details, see the following link http://www.fin.gc.ca/news08/08-051e.html