Below is a news release from the Canadian Government stating that there will no longer be 40 year amortizations and no more zero-down mortgages in Canada. This will however take in effect as of October 18th, 2008, and will only effect new mortgages, while existing zero-down or 40 year mortgages will not be effected.
These changes are being made to government-backed mortgages (insured mortgages including CMHC, AIG and Genworth).
These changes include:
-Fixing the maximum amortization period to 35 years
-Requiring a minimum down payment of 5%
-Establishing a minimum credit score requirement
-Introducing new loan documentation standards
Click Here to Download government-release-40-year-zero-down.pdf