Mortgage rule changes from the past 4 years

Thanks to Jessi Johnson who passed on this little cheat sheet of the changes to the Mortgage Rules over the past 4 years.

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

 

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