Here’s our picks for the five biggest developments that helped shape Canada’s mortgage industry in 2007.
- The downpayment required to qualify for a conventional mortgage fell from 25% to 20%, saving homeowners thousands in default insurance premiums.
- The American subprime debacle hurt Canadian mortgage shoppers by increasing interest rate spreads and decreasing alternative lending options.
- The surge in popularity of longer-term amortizations bolstered Canada’s housing market.
- The mortgage default insurance market became more competitive, with big new entrants like AIG United Guaranty. Consumers have benefited with lower insurance premiums and more mortgage choices.
- CMHC’s 100% financing program for rental properties, opened up income property investing to the masses.