Robert McLister·Mortgage Broker News·March 3, 2010New Mortgage Rules: The Impact CIBC economist, Ben Tal, predicts mortgage volumes will fall due to the Finance Department’s new mortgage rules. Here are his estimates of how overall mortgage originations will be affected: New Rule #1: Increased qualifying rates on fixed terms less than five years and variable mortgages. (The new qualifying rate is yet to be determined.) Effect: 5%-6% decrease in overall origination volumes New Rule #2: 5% increase in the down payment requirement when refinancing. (90% LTV will be the new maximum for refinances. Currently it’s 95%.) Effect: 7%-8% decrease in overall origination volumes New Rule #3: 15% increase in the down payment requirement for rental property financing. (20% will be the minimum down payment for insured rental financing. Currently it’s 5%.) Effect: 2%-3% decrease in overall origination volumes These new rules are currently scheduled to take effect April 19. More… Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.