Posted by & filed under Victoria Real Estate Update.

The following are the changes in mortgage rules over the past 4 years including all of 2012?s changes:

2012

  • LOC (line of credit) reduction to a maximum of 65% LTV (loan to value)
  • Stated income for BFS (business for self) programs require 35% down now
  • Cash-back no longer accepted as down payment
  • Qualifying rates on conventional lending to now use the 5 year  benchmark rate for terms of less than 5 years and VRM’s (variable rate mortgages)
  • 30 year amortization gone for high ratio mortgages, now 25 years
  • No mortgage insurance (CMHC, etc) for properties over 1 million
  • Lower maximum LTV (loan to value) for refinances. Was 85%, now 80%
  • GDS (gross debt servicing) reduced from 44% to 39%
  • Rental property down payment requirement is now 35% from 20% with many lenders

2011

  • 35 year amortization gone for high ratio mortgages, now  30 years
  • Lower maximum LTV (loan to value) for refinances. Was 90%, now 85%
  • Elimination of government insurance on LOC’s (line of credits)

2010

  • Qualifying rates on high ratio lending to now use the 5 year benchmark rate for terms of less than 5 years and VRM’s (variable rate      mortgages)
  • Lower maximum LTV (loan to value) for refinances. Was 95%, now 90%
  • Rental property down payment requirement is now 20% from 5%

2008

  • Minimum down payment changed from 0% to 5%
  • Minimum beacon score of 620 required for high ratio lending
  • New loan documentation requirement standards
  • 45% maximum TDS ratio
  • 40 year amortization gone for high ratio mortgages, now 35 years

Before you start to begin your real estate search contact a qualified Mortgage Professional so you know what you can afford and if you qualify.

If you are planning to Buy or Sell Real Estate in Victoria BC in the future, just let us know. Our team of professionals has the knowledge and know how to help you navigate through the market. Contact Bill or David at Properties in Victoria Professionals Real Estate team. You can consult their Victoria Real Estate website www.PropertiesInVictoria.comor just email Bill at Bill@PropertiesinVictoria.com

“Like” us at www.facebook.com/propertiesinvictoria

Properties in Victoria Professionals- Helping You with all Your Victoria Real Estate needs.

Royal LePage Coast Capital Realty – Oak Bay

All Articles More Like This