AS OF NOV. 1:
1. Lines of Credit: You can now only borrow to a maximum of 65% loan to value of your property - in the past it was
2. Self-Employed: Clients who are self-employed can ONLY go to a maximum loan to value of 65% on conventional
3. All Variable Rate Mortgages must use the 5-year Bank of Canada benchmark rate to qualify as well as any fixed or
variable terms less then 5 years insured or conventional must qualify on the 5 year fixed Bank of Canada benchmark
rate. So, if 3 year rate is 2.9% ... that is fine you can get it ... but you need to qualify at the current 5 year rate (currently
IF YOU HAVE LESS THAN 20% down payment, otherwise known as high ratio mortgages, insured through CMHC or
1. Amortizations are reduced to 25 years from 30 years.
2. Refinancing is REDUCED from 85% Loan-to-value (LTV) to 80% - no change to purchases.
3. Properties purchased over $1 million no longer will be eligible for mortgage insurance. Anything over $1 million
dollars, 20% down payment is required.
4. GDS and TDS set at 39% and 44%. The reduction in amortization combined with the lowered GDS ratio could
affect a number of people's ability to qualify.