Canadian Real Estate Information

Timeline for Changes in Canadian Mortgage Rules

2003 –September (Interest Rate 3.00%):

• Canadian Mortgage Housing Corporation (CMHC) insures 5% down, 25 year amortizations and removes all price ceiling limitations.  Mortgages of any amount are insured by the government removing the risk from banks regardless of cost

 2004 –March (Interest Rate 2.50%):

•  CMHC introduces Flex-Down product allowing 5% down to be borrowed and 1.5% closing costs to be borrowed.

 2006 –March (Interest Rate 4.00%):

• CMHC introduces 0% down 30 year amortizations.
•  AIG Enters the Canadian mortgage insurance market.
•  Genworth announces 35 year amortizations.

 2006 –June (Interest Rate 4.50%):

• CMHC introduces 0% down 35 year amortizations. Interest only payments allowed for 10 years.

 2006 –November (Interest Rate 4.50%):

• CMHC introduces 0% down, 40 year amortizations.  Interest only payments allowed for 10 years.

 2008 –October (Interest Rate 2.50%):

• CMHC tightens to 5% down and reduces amortizations to 35 years.

 2010 –April (Interest Rate 0.50%):

• Borrowers must meet the standards for a five-year fixed-rate mortgage, even if they choose a variable mortgage with a lower rate or a shorter term.
• The maximum Canadians can withdraw when refinancing their mortgages is reduced to 90 per cent of the value of their home, from 95 per cent. 
•  A minimum 20% down payment is required to qualify for CMHC insurance for non-owner-occupied properties purchased as an investment.

2011 –March (Interest Rate 1.25%):

• CMHC reduces amortizations to 30 years.
• The upper limit that Canadians can borrow against their home equity was lowered from 90 per cent to 85 per cent.
• Government insurance backing on home equity lines of credit, or HELOCs, has been removed.

2012 –July (Interest Rate 1.25%):

• CMHC reduces amortizations to 25 years. 
• The upper limit that Canadians can borrow against their home equity is reduced from 85 per cent to 80 per cent. 
•  Proof of income is required to obtain CMHC insurance.  Self declared statements of income are no longer accepted.

Historical Prices

Historical Interest Rates
 

Int Rates 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 January 3.00% 2.75% 2.75% 3.75% 4.50% 4.25% 1.25% 0.50% 1.25% 1.25% February 3.00% 2.75% 2.75% 3.75% 4.50% 4.25% 1.25% 0.50% 1.25% 1.25% March 3.25% 2.50% 2.75% 4.00% 4.50% 3.75% 0.75% 0.50% 1.25% 1.25% April 3.50% 2.25% 2.75% 4.25% 4.50% 3.25% 0.50% 0.50% 1.25% 1.25% May 3.50% 2.25% 2.75% 4.50% 4.50% 3.25% 0.50% 0.50% 1.25% 1.25% June 3.50% 2.25% 2.75% 4.50% 4.50% 3.25% 0.50% 0.75% 1.25% 1.25% July 3.25% 2.25% 2.75% 4.50% 4.75% 3.25% 0.50% 1.00% 1.25% 1.25% August 3.25% 2.25% 2.75% 4.50% 4.75% 3.25% 0.50% 1.00% 1.25% 1.25% September 3.00% 2.50% 3.00% 4.50% 4.75% 3.25% 0.50% 1.25% 1.25% 1.25% October 3.00% 2.75% 3.25% 4.50% 4.75% 2.50% 0.50% 1.25% 1.25% November 3.00% 2.75% 3.25% 4.50% 4.75% 2.50% 0.50% 1.25% 1.25% December 3.00% 2.75% 3.50% 4.50% 4.50% 2.50% 0.50% 1.25% 1.25%