The Minister of Finance announced today, February 16th that he will take measured steps to support the stability of the housing market.

Drawing on the recent global financial crisis an early policy action will continue to encourage Canadian home ownership.

Although there is no clear housing bubble  the Government has decided to take cautious steps to prevent one from happening effective April 19, 2010.

• Require all borrowers to meet the five-year fixed rate mortgage even if they elect to choose a shorter term and lower interest rate
• Lower the maximum. buyers can withdraw to refinance their mortgages from 95 per cent to 90 per cent of their home value
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non owner occupied properties

How this will affect the Toronto Real Estate market remains to be seen however first-time buyers might be forced out of the market with rising Toronto prices and higher down payments.

There are thousands of new Toronto Condos on the market now and more planned for 2010 and the minimum down payment of 20 per cent and the financing rules could also affect Toronto Condominium investors.