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.