Recently, Canada announced tough new standards for anyone seeking a mortgage backed by Canada Mortgage and Housing Corp.

The Calgary Herald reports:

“All borrowers will have to demonstrate that they could make the payments on a five-year, fixed-rate mortgage — even if they end up choosing a mortgage such as a variable-rate mortgage, that would result in a smaller payment.

And anyone who wants a government-insured mortgage to buy a home in which they will not live will have to come up with a minimum down payment of 20 per cent, up from five per cent.”

Wow, those are some tough new rules! The American-based FHA is expected to tighten their mortgage requirements as well. If the changes are this stringent, you can bet that a lot more borrowers will be looking for creative financing solutions. photo credit: ★Debs★

See Also:

FHA Loans

Tags | creative financing, FHA