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.