There has been a little confusion with the governments new policies regarding insured mortgages. Canada Mortgage Housing Corporation will be implementing new rules as of
April 19th, 2010. This information was provided by Alexis Drake, Mortgage Agent.
What is the qualifying rate for my customer?
We still have not been able to confirm what qualifies as the 5-year “posted” rate, whether it will be our posted rate or a posted rate set by CMHC or someone else.
When will these changes take effect?
The Government has stipulated a deadline of April 19, 2010 to implement these changes. TD Canada Trust has not determined at this time if we will be implementing the changes prior to that date, but we will keep you posted.
The Government’s announcement advised “Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010”. However, once TDCT has finalized all dates, we will advise of further details.
Is the 90% Loan to Value announced in the change for refinances only, or will it impact purchases?
The 90% Loan to Value is for refinances only, not purchases. Purchasers may still borrow up to 95% of the home value, while refinancing is restricted to withdrawing up to 90% of the home value.
How do these changes impact rental properties?
a minimum down payment of 20% is required for non-owner-occupied properties. This stipulation does not include our “2nd home” policy at this time.