New Mortgage Rules coming by September 14th…on the heels of the last set of new rules from July.
1. HELOCs (Home Equity Line of Credit) will be reduced to 65% financing maximum.
Some lenders will still allow for a re-advanceable product up to 80% financing,
but only 65% of the product is re-advanceable.
Example: Home worth $100,000, $80,000 total facility, $65,000 max re-advanceable (Line of Credit),
$15,000 mortgage (making principal payments on this portion will not increase the $65,000 LOC portion).
(Not all lenders have changed this yet, but some already have.)
2. Net worth program has been reduced from 75% to 65% with one lender.
3. New to Canada program reduced from 75% to 65% with one lender.
4. Self Employed program reduced from 75% to 65% with one lender. This matches self employment products currently available with most lenders.
5. Cashback ($0-down) mortgage being cut off by one lender. There are currently 2 national lenders still offering cashback mortgages where the cashback is available to be used towards the down payment, effectively allowing $0-down.
If you would like more information,
email me at [email protected]