As of April 19th Genworth and CMHC will be making the following changes to insured mortgages:
1. All rental suite income will no longer be qualified at an 80% offset, instead it will be a 50% Add Back!!
Where currently we could use 80% of the suites rental income to offset the expenses of the home, we will now only be able to use 50% of the rental income and add it to the client’s employment income. This will greatly reduce the benefit to a purchaser purchasing a home with a suite.
If you REQUIRE rental income to qualify for a purchase, you need to have an accepted, unconditional offer in place prior to April 16th, 2010.
2. All refinances will require a 90% loan to value in the property
3. All mortgage terms less than 5 years, including Variable products, will have to be qualified at the 5 year fixed benchmark rate.
4. All self employed clients requiring a stated income product, will require a 10% down payment for a purchase vs. the current 5% down payment. Refinances will require 15% equity remaining in property. (This change takes place APRIL 9th, 2010)
5. All rental properties will require a 20% down payment.
