Update from Flaherty's message this morning!
All in all this is not going to have a big effect on the real estate market (in my opinion). See below for a quick summary of changes,
1. Minimum qualifying interest rate of 5 yr fixed (previously, the 3 year fixed rate was used to qualify anyone looking for a 3 year or shorter term, or a variable rate mortgage). 2. Maximum refinancing reduced to 90% of value of their home (down from 95%)3. Minimum 20% down on non-owner occupied borrowing. The old rules still apply for anyone buying an owner occupied property even if it has a rental component (duplex, triplex, fourplex etc), however if they're not planning on residing in the property, high ratio insurance will no longer be available. Simply put these changes will close the door on some of the riskiest purchases and mortgage seekers, however most of you won't notice any difference. If you have any questions please email me or call me and I'll try to clarify. Sincerely,Wanda