CMHC Canadian Mortgage Rule Change Summary

In summary, talk with your realtor about buying a home ASAP.  Make sure you get a ‘live mortgage commitment’ dated before April 19th 2010. The new imposed rules will affect how much you are qualified for. 1. 20% minimum down payment for rental properties (used to be 5%) 2. Maximum refinancing reduced from 95% loan [...]

CMHC Insurance Product Guidelines Download

Click on the links directly to download the latest CMHC insurance guidelines.  Any mortgages that are > 80% Loan to Value in BC (some province 75% LTV)  requires insurance from one of the following mortgage insurance companies: CMHC, Genworth or AIG.   When the application needs insurance, lenders generally go by insurance rules (see links below) [...]

Grow-Op Properties – Is it Lendable?

Some lenders try to get away from ‘grow-op’ properties. Some lenders will consider lending on such property providing the property is strong and has been fully remedied. In addition to the district or city re-issuing an occupancy permit, the credit union requires an inspection report prepared by Pacific Environmental confirming that the house is fit [...]

Renewing or Refinance Citi Financial Mortgage?

Do you have a Citi bank mortgage up for renewal? Contact us and let us help. With the financial crisis in the States, Citi Financial has officially pulled out from subprime lending and cut their broker channel last year 2008 November. If you currently have a Citi Financial mortgage up for renewal, even it is [...]

100% Financing – Purchase or Refinance

New Update: 100% available, rate ranges between 9.0% – 12%, first mortgage only. As long as the applicant has credit score of 640 or higher, with minimum 3 tradelines and 1 with 36 months history, he/she can qualify for the 100% financing or 100% refiannce if he/she can debt service. For thie program, because the [...]

Genworth – Self-Employed Insurance Guideline Changes

Effective December 8, 2008, the following changes have been implemented to the Genworth BFS Program. * Borrowers with commission income are no longer eligible * The income reported by the borrower must be reasonable based on the industry, length of operation and type of business. * Beacon Scores have increased for 95% LTV deals – [...]

Flex Down payment VS Traditional Down Payment

Flex Down” actually has been around for some time. Flex down (CMHC program) is available for an “employed individual” who receives salary, or for “self employed” only if he/she claims sufficient income to debt service. Flex down payment could include the following: personal line of credit (LOC) credit card transfer borrowed funds. Whereas, a traditional [...]

How to Have 100% Financing – Part 1

Yes. 100% Financing exists. Here is 1 of the 5 ways: Method 1: 100% Financing with Insured Mortgage The obvious and the most straight forward one. If your can debt service the mortgage payment (see qualifying article), you can get a high ratio mortgage up to 100%, and pay insurance premium 3.10%, so it will [...]

How to Have 100% Financing – Part 1

Yes. 100% Financing exists. Here is 1 of the 5 ways: Method 1: 100% Financing with Insured Mortgage The obvious and the most straight forward one. If your can debt service the mortgage payment (see qualifying article), you can get a high ratio mortgage up to 100%, and pay insurance premium 3.10%, so it will [...]

What is Cash Back Mortgage?

A cash back mortgage provides 3%-5% of your purchase price, ‘cashed back’ to you on closing day. It is ideal for clients who need money for legal fees, furnishing and decorating, or other moving expenses. It can also be used as a down payment like flex down program (borrowed down payment). For purchasing of $100K [...]