Changes effecting home owners looking at obtaining a variable rate mortgage, in the past clients could qualify based on the variable rate lowering ratio’s for qualification purposes. Effective June 30 2015 all Low ratio variable and fixed terms of less than five years will have to qualify on the Bench Mark Rate currently 4.64% making it more difficult to qualify.
CMHC will no longer accept stated income deals, all income to verified via “third-party verification” (Notice of Assessments, T1 Generals or Business Financials. CHMC has been doing this for a while however there are 2 other insurers Genworth Financial and Canada Guarantee that are still accepting stated income applications for those self-employed, however reasonability of income will be a key factor.
CMHC is also eliminating the Cash-Back Down payment, unless the borrow can come up with their own 5% down payment. The Great news is there are credit Unions that are not governed under these new rules and still provide 5% Cash-back for down payment, however the interest is higher.
For complete details on the changes read the link attached. Need help understanding these changes feel free to contact us at “no cost” at 905-778-8100
Giuseppe Strazzeri
Service First Mortgages
Dominion Lending Centres
Mortgage Agent Lic #M08009255
CMHC will no longer accept stated income deals, all income to verified via “third-party verification” (Notice of Assessments, T1 Generals or Business Financials. CHMC has been doing this for a while however there are 2 other insurers Genworth Financial and Canada Guarantee that are still accepting stated income applications for those self-employed, however reasonability of income will be a key factor.
CMHC is also eliminating the Cash-Back Down payment, unless the borrow can come up with their own 5% down payment. The Great news is there are credit Unions that are not governed under these new rules and still provide 5% Cash-back for down payment, however the interest is higher.
For complete details on the changes read the link attached. Need help understanding these changes feel free to contact us at “no cost” at 905-778-8100
Giuseppe Strazzeri
Service First Mortgages
Dominion Lending Centres
Mortgage Agent Lic #M08009255