Friday, July 6, 2012


Goverment introduces new Mortgage Rules

Effective July 9, 2012:

 

  • The Maximum Amortization Period has been reduced to 25 years from 30 years

  • Refinance Maximum Loan to Value: The maximum loan to value for 1-4 unit residential properties will be reduced to 80% from 85% 

  • The maximum purchase price or as-improved value for purchase plus improvement loans cannot exceed $999,999.99 (must be less than $1 Million)
  • Maximum Debt Service Ratio Limits (clients with beacon scores less than 680)
    • The maximum Gross Debt Service ratio (GDS) cannot exceed 35%
    • The Total Debt Service (TDS) cannot exceed 42%
  • Maximum Debt Service Ratio Limits (clients with beacon scores equal to or greater than 680)
    • The maximum Gross Debt Service ratio (GDS) cannot exceed 39%
    • The Total Debt Service (TDS) cannot exceed 44%