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New Regulations for Financing

December 15th,
New Rules and Regulations:
Increased Price cap on insured mortgages.
The maximum purchase price for high-ratio-insured mortgages (LTV greater than 80%) has increased to $1,499,999.
Please note the downpayment requirements for such Loans…
5% down payment on the portion of a purchase price up to $500,000.
10% down payment on the remainder of the lending value (i.e. purchase price between $500,000 and under $1,499,999).
Extended Amortization:
Maximum 30-year amortization will now be available for:
  • First-time homebuyers OR
  • Borrowers that are purchasing a new build property.
* Property must be owner-occupied or occupied by a family member on a rent-free basis.
Anyone can buy with a minimum downpayment, now, up to 1,499,999 (as long as it’s the primary residence), only FTHB or new build buyers can also buy with 30-year amortization.
Any borrower putting down 20% or more may access 30-year amortization over or under $1.5 million (always have been able to).
Who is considered a First-time homebuyer?
  • A borrower who has never purchased a home before
  • A borrower that has not occupied a home as a principal residence that either they themselves or their current spouse or common-law partner owned in the last 4 years
  • A borrower who recently experienced the breakdown of a marriage or common-law partnership.

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