Tightening the terms of issuance a mortgage loan in Canada
In late June, the Minister of Finance of Canada, announced new rules for issuing a mortgage loan for the purchase of residential property, which came into force on 9th of July 2012. We are talking about tightening the issuance of loans. It suggests that the government is seriously concerned about the second wave of economic crisis, which has plunged the world economy, and takes measures to ensure the safety of Canadian banking system. Another effect, which the government expects to achieve, is to cool down the real estate market in Canada, primarily in such cities as Toronto and Vancouver.
The essence of the changes is reduced to a few points: