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.
Based on my research, most home mortgage arrangements here in Canada are also insured to protect the interests of both parties. This has been the usual explanation of several Alberta best mortgage brokers that I've met.
ReplyDeleteBy the way, I'm glad that I found this blog, since I have a friend in Australia who wants to buy a house there, too.
Thanks, Krista for the informative post!
Thanks for sharing this useful information with all of us.Keep sharing more in the future.
ReplyDeleteHave a nice time ahead.
Terrific work! This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher!
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