New mortgage rules - a review of FAQ

By
Real Estate Sales Representative with Blue Elephant Realty Inc., Brokerage

The recent mortgage changes are still causing confusion with potential buyers/borrowers.  The following are the most common questions provided by my mortgage consultant:

·         Has the minimum equity requirement changed?  It depends:

-          No change for purchases:  minimum equity remains at 5%

-          Yes when refinancing: client requires 20% equity in property.

·         Is the maximum amortization 25 years?  It depends:

-          High ratio mortgages (less than 20% equity):  maximum amortization is 25 years;

-          For conventional mortgages (minimum  20% equity):  maximum amortization of 35 years is still available with a few prime lenders.

·         Can I have a high ratio mortgage if the property purchase price is over $1 million?

-          NO – for purchases over $1 million, the new rules state the minimum down payment must be 20%.

·         I have a preapproval – does that mean I’m still ok under the old rules?

-          NO – preapprovals based on the old guidelines are no longer valid.  When arranging a final approval, it will be approved based on new guidelines.

If you have any concerns about how the changes impact your buyers, I can connect you to a qualified mortgage professional. 

Although mortgage rates remain very low, it’s  important to work with them on a long term strategy.


 

Posted by

 

 

*******************************************************************************************

 

Contact me to find out more about Toronto Design-focused Real Estate Solutions for your needs.

Anne Lok Real Estate Broker, Homelife/Realty One Ltd. Brokerage
416-799-9632

www.urburbia.com

www.annelok.com

www.facebook.com/moderntorontohomes

www.instagram.com/_annelok

 

 

Find Anne Lok at Urburbia on Google+
 

 

 

Toronto neighbourhoods

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Ontario
Tags:
financing mortgage rates toronto buying a house

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
281,176

Anne Lok

Toronto Modern Real Estate
Let me help you find an awesome home. Connect with me!
*
*
*
*
Spam prevention

Additional Information