National resale activity edges down in January

OTTAWA – February 17th, 2010 – According to statistics released by The Canadian Real Estate Association, the number of homes sold through the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards declined in January 2010 from the previous month.

Seasonally adjusted national home sales dropped 2.8 per cent from near record levels reported in December. Ontario accounted for about half the national decline. Activity was also down in British Columbia, Alberta, and Manitoba, but reached new heights in Quebec.

The Federal Government takes steps to protect consumers from predatory lending practices.

“Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. “Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent lenders from facilitating it."

The Government will therefore adjust the rules for government-backed insured mortgages as follows, and are effective April 19, 2010:


- All borrowers must qualify at the 5 year rate even if they choose a mortage with a lower interest rate and shorter term.

- Lower the maximum lending on equity limit to 90% of the appraised value of your home on refinancing, from 95%


- 20% down is now needed for government-backed CMHC insured mortgages on investment properties that are not owner-occupied.

- Amortization period and down payment remain unchanged at 35 years max and 5% down

The result of these changes will be negligible as most lenders already have these policies in place, as a minimum.