More New Mortgage Rules!

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]

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#realestateapprentice
#canadianrealestate.

 

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