Finding a mortgage you can live with just got more difficult

You likely have heard that the Federal government recently announced changes that impact mortgage insurance and eligibility.

In our last Blog Post How will the new mortgage rules affect you? we shared details about these new government rules and now that they are in effect, we are starting to see the negative impact on Canadian consumers and the mortgage industry as a whole.

Consumers are now subject to a rate premium. Call us today to get the full details and get informed.

Pre-November 30th Terminology: High Ratio vs Conventional

Post-November 30th Terminology: Insurable vs Un-insurable

As of today, there are only 2 types of Mortgages:

1
Insurable: (Best Rates, Apply to variable and 1-10 year Fixed terms)

(Applicable to all mortgages regardless of LTV)

• Purchase, Purchase/Port, Transfers, 2-4 Unit Rentals
• Qualifying on greater of Benchmark Rate or Contract Rate
• Property Value max $999,999.00
• Purchase Transaction, Minimum Credit Score 600
• GDS/TDS maximum 39/44
• Maximum Amortization 25 years
• Owner Occupied Rentals 2-4 units
• 2-4 unit True Rentals, Minimum Credit Score 650
• Switches that HAVE “transferable insurance” <80% LTV or >80% LTV, Minimum Credit 600
• Switches with NO transferable insurance <80% LTV

2
Un-Insurable: (15bps Rate Premium Apply to variable and 1-10 year Fixed terms)

(Applicable to mortgages to <80% LTV)

•   Refinance, Purchase, Purchase Port, Transfers, 1-4 Unit Rentals
• Refinances, Minimum Credit Score 620
• Qualify on Contract Rate 5, 7 & 10yr Fixed Terms
• Qualify on Benchmark Rate 1 – 4yr Fixed Terms and Variable Rate Mortgages
• GDS/TDS maximum 39/44
• Amortizations 25.01 to 30 years
• Purchase Price above $999,999.00 ( Minimum 650 Credit Score)
• 1 Unit True Rental, Minimum Beacon Score 650
• Switches with NO transferable insurance <80% LTV, Minimum Credit 600

Unhappy about these changes? Have your voice heard!

Our national association, Mortgage Professionals Canada, has put together an advocacy page on its website that allows you to send a message with just a simple click; I encourage you to please do this now:

www.mortgageproscan.ca/en/page/get-involved

If we all did this, imagine the impact we would have voicing the dissatisfaction on the unintended consequences caused by this government rule change.