Mortgage Rules

Mortgage Rules

1.   Buyers can still purchase with 5% down for owner occupied homes.  

2.   The no downpayment option is still available under 5% the cash back program, keeping in mind this is at a higher rate.  

3.   The maximum amortization on CMHC Insured Mortgages is 30 yrs. Up to 40 yrs is available if clients have 20% down and does not obtain CMHC insurance.

4.   The maximum loan to value on a purchase, for self employed applicants is 90%, therefore they need 10% down for owner occupied homes. 

5.   For clients wanting to refinance their existing home, perhaps to take out equity to purchase another property, or whatever the reason, the maximum is 85% loan to value.

6  Commission sales people have to qualify on the last two years Notice of Assessment income declared on Line 150.

7.   Self-employed who have been in business less than 3 yrs, are eligable for the "stated income" program under CMHC, with a credit score of 700 and over. Stated income is income that we do not have to prove.

8  Self-employed who have been in business more than 3 yrs must qualify based on two years Notice of Assessment income declared on Line 150 and have a credit score of 700 or more.

9.   Buyers can still purchase a second home, cottage, home for their children etc with 5% down as long as they qualify without using rental income.

10The maximum loan to value on rental properties is 80%, buyers need 20% down and must qualify using anywhere between 50% and 80% of the rental income. 100% of the rental income is never used. 

 Compliments of:

Gidia Molinaro CPMA

Mortgage Agent
Centum Omni Mortgage Corp

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Diane Walker

Diane Walker

Broker
CENTURY 21 Today Realty Ltd., Brokerage*
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