This morning Federal Finance Minister Jim Flaherty announced a few changes to mortgage insurance rules intended to come into force on April 19, 2010.  These changes are as follows:

1. All borrowers must meet the standards 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 one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home;
3. Non-owner occupied properties will require a minimum down payment of 20%.

These changes are not going to effect the average home buyer. The main group effected are the speculators such as someone buying 5 condos in Toronto with 5% down and planning to sell them in a couple of years time when the units become available.

- Masood Vatandoust