New Mortgage Rules Beginning December 15th
We have more clarification of the new mortgage rules being implemented on December 15th.
1. The 30 year amortization is available for ALL first-time home buyers, provided at least one person is a first-time buyer.
Definition of First Time Buyer – never having owned, if you have not owned for 5 years or longer, and if you are going through a separation and selling the matrimonial home, both spouses will be considered first-time buyer.
2. The 30 year amortization is for submissions after December 15th. However, lenders can resubmit previously approved applications after December 15th, provided it’s done before closing.
3. The CMHC insurance premium will have a surcharge of .20% for 30 year amortizations on all loan-to-value ratios.
4. This increased high ratio insurance premium will attract slightly more PST which is often overlooked when determining closing costs.
5. As of November 21st, borrowers of uninsured/uninsurable mortgages can shop around for rates without having to undergo the Stress Test.
Reach out to your mortgage professional for the best options for you…..if you need a referral, just shoot me a note and I’ll connect you.
Photograph courtesy of Anna Guererro
