www.dreamrealestate.ca Anna Labadze Vancouver West Realtor 604.782.3552
As you are aware, the Minister of Finance recently announced changes to high-ratio government guaranteed mortgages. Below is a brief overview of the changes that will be taking place.
- Refinances: Maximum loan to value (LTV) is reduced from 95% to 90%.
- Non-owner occupied Rentals: Max LTV is reduced from 90% to 80% (essentially no longer available under high ratio)
- Second Homes: Maximum number of units reduced from 2 units to 1 unit.
- Qualification Rate: (effective April 19th) Borrowers will be qualified using the greater of the 5 year benchmark rate* or the contract rate. *The benchmark rate is available on the following website: http://www.bankofcanada.ca/en/rates/interest-look.html. The benchmark rate is only applicable to high ratio deals. Deals with LTV of 80% or less will continue to follow our current qualifying criteria.