A reminder of the new mortgage rules.
With many lenders, these rules have already been in effect since Sept 14th.
1. HELOC’s (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).
2. Net worth program reduced from 75% to 65% with a single lender.
3. New to Canada program reduced from 75% to 65% with a single lender.
4. Self Employed program reduced from 75% to 65% with a single lender.
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 firstname.lastname@example.org.