No more zero-down and 40-year amortization mortgages

[trent]

The Canadian government created new rules for government guaranteed mortgages, making it harder to borrow. The government will no longer back 100% financing and will require a minimum of 5% downpayment government-backed mortgages. The maximum amortization period for new government-backed mortgages was lowerd from 40 to 35 years. The government has introduced new standard for loan documentation and it also requires a minimum credit scores for government-backed mortgages. The new rules will be in effect on Oct. 15, 2008.

Obviously the Canadian government is really scared of the future of Canadian real estate (read: "The coming Canadian real estate collapse") and they are trying to prevent it. Too little, too late as usual. The changes are not enough, and there is nothing that can stop the overpriced Canadian real estate from crashing down to earth.