Insured Mortgages Up To $1.5 Million and 30 Year Amortizations

Did you know that the government recently changed mortgage lending guidelines to allow first time home buyers as well as all applicants buying newly built homes to qualify for home purchases using a 30 year amortization?  

This measure will apply to applicants requiring high-ratio mortgage insurance (required when purchasing with a down payment less than 20 per cent and loan-to-value greater than 80%), that are either:

*All first-time homebuyers OR

*All other buyers purchasing a newly constructed home.

A First Time Homebuyer is defined by meeting one of the following criteria:

*The borrower has never purchased a home before; OR

* In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; OR

* The borrower recently experienced the breakdown of a marriage or common-law partnership.

The price cap of $1 million for insured mortgages has risen to $1.5 million. 

This measure will apply to all applicants requiring high-ratio mortgage insurance (required when purchasing with a down payment less than 20 per cent and loan-to-value greater than 80%), and must satisfy the following requirements:

The value of the eligible residential property against which the loan is secured must be less than $1.5 million; and, the down payment requirements for the loan are as follows:

*5 per cent on the portion of a purchase price up to $500,000.

*10 per cent on the portion of a purchase price between $500,000 and under $1.5 million.

Call us today for more information!