Qualifying Interest Rate:
1) all borrowers (high ratio, less than 20% down), if taking a variable mortgage or a fixed term under 5 years, must qualify on the contract interest rate, or the "benchmark rate" set by Bank of Canada. ( We don't know what the benchmark rate will be yet but we expect it to be close to a 5 year posted rate)
2) all borrowers (high ratio) taking a 5 year fixed term or higher will qualify on the contract interest rate.
Self- Employed:
1) purchases for self empl under "stated income" program ltv is reduced to 90% from 95%
2) refinances for self empl under "stated income" program ltv is reduced to 85% from 90%
3) anyone self empl in same business for 3 or more years will not be eligible for "stated income" program and will have to provide proof of income to support what they earn.
Courtesy
Joanne Vickery
Dominion Lending Centres
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