The Government announced on July 9 that they will no longer back new 40 year amortized mortgages or 100% financing. As of October 15, 2008, insured mortgages will require 35 year amortization or less, minimum of 5% down, a minimum credit score and new loan documentation. The new rules were put into effect to protect and strengthen Canada’s housing market as a result of the housing troubles in the United States. To read more visit: http://www.fin.gc.ca/news08/08-051e.html.

The media is reporting that the market may be slowing. I am not sure how they reached their conclusion but one thing is for sure, there are a lot more listings out there. Buyers tend to be taking a bit more time to decide on a place because there is that much more to choose from. This does not necessarily mean that they are getting properties at a lower price but there seems to be less competition on properties which mean prices are not being driven up as much with multiple offers.