19 Jun

** LENDER ALERT **

General

Posted by: Croydon DeMello

‘Effective immediately, MCAP will qualify Insurable Switches/Transfers originally closed prior to November 30, 2016 as follows:

-Using the Contract Rate for 5 year Fixed term mortgages

-Using the greater of Contract Rate or Benchmark for Variable mortgages or Fixed mortgages with a term of less than 5 years’

***

This means if you originally closed your mortgage before November 30 2016 you can now transfer it to MCAP and they will not be using a stress test to qualify for a fixed rate mortgage.

***

11 Jun

** Genworth Canada Alert **

General

Posted by: Croydon DeMello

‘Genworth Canada confirms that it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements.’ – Genworth Canada

This means you can have a bit more purchasing power with Genworth Canada compared to CMHC.

4 Jun

** CMHC ALERT **

General

Posted by: Croydon DeMello

Effective July 1, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:

Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;

Establish minimum credit score of 680 for at least one borrower; and

Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes. (i.e cannot borrow money for down payment)

– CMHC