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Bill Morneau tightens mortgage rules on homes over $500K - Politics - CBC News

RECENT MORTGAGE CHANGES Courtesy of Edith Loewen with RBC. 

In regards to the recent Mortgage changes I have attached an example of how it will affect buyers. These changes will mostly impact second time home buyers; I don’t anticipate the difference between what they will need now and after February 15th to have a negative impact on our market. I have confirmed the details with CMHC to answer three of the most asked questions.

1, What happens if the client is approved SUBJECT to sale of home?
-As long as the client has an approval by CMHC subject to the sale of their home before February 15th they have until July 1, 2016 to sell their home

2, What happens if the client is approved before February 15th and there is a change in closing date?
-As long as the closing date is not extended past July 1, 2016 the original approval will apply

3, What if the application is at CMHC before February 15th and it’s approved BUT waiting for an appraisal?
-CMHC will apply the guidelines as per the day the application was submitted to them

All Mortgages must close by July 1st, 2016 under the current guidelines; they will not be grandfathered past that date.

5% down on the first $500,000 and 10% on the remainder of the purchase price.
Ex: Purchase Price $645,697.00 Down Payment: $500,000.00 x 5%= $25,000 + $145,697 x 10%= $14,569.70 total down payment would be $39,569.70

Please find attached some scenarios of the new rule change.
Mortgage payments are monthly based on five year Fixed Closed rate at 2.84% amortized over 25 years.

Check out the attached PDF for more information.

Please don’t hesitate to contact Edith at any time for Mortgage options or advice.
Ph: 250-262-4040 or email: edith.loewen@rbc.com