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%
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