HawthorneVillager.com

Really? LTV max 80%? That's a huge change.

_________________
Hunter Obee
Sales Representative
Royal LePage Meadowtowne Realty
Diamond Award Winner - Top 3% in Canada
http://www.TheHomeHunter.ca
905-878-8101

can you explain how it might affect a first itme home buyer with a pre approval for a new build in January of 2013?

That is just on refinances Hunter. Purchases can still go up to 95%.



It may not affect you at all. Best to check with your bank who you have your approval with just to make sure everything goes smoothly.

Good luck!

_________________
Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

Follow me on Twitter! http://www.twitter.com/paulmeredith

Thanks so much!
Did any of the changes have anything to do with % of Downpayment?

The new measures will apply as of July 9, 2012. Exceptions will be made to satisfy a binding purchase and sale, financing or refinancing agreement where a mortgage insurance application has been made before July 9, 2012. While the changes come into force on July 9, 2012, any mortgage insurance applications received after June 21, 2012 and before July 9, 2012 that do not conform to the measures announced today must be funded by December 31, 2012. Talk to your bank to ensure everything will still be okay.

_________________
Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

Follow me on Twitter! http://www.twitter.com/paulmeredith

if you are fully approved through one of the long hold like RBC does that mean you are in a contract to use them or can you still shop around 120 days before?

Ard921- you can always shop closer to closing

Andrew - love your post. Thanks : )

_________________
Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

Do we know what really qualifies for the "old rules". I know there is some confusion.

I know one broker we spoke to said: I believe if we get approval now we're good. Which I get because it's so sudden.

_________________

A few of the brokers have already answered this...if you are renewing, you can stick to your original ammortization. So if in 5 years you renew, and you had a 35 year ammortization, you will have 30 years on your renewal.

I am so confused, I am getting different stories.

One broker said if we get an actual approval (not pre-approval)before July 9 we are good. Called a big bank to check this- they said no, house has to close by July 9.

Feels like it's not really clear...

_________________

to provide some clarity:

- new applications for high ratio mortgages submit before Juy 9th will be under the existing guidelines - the new application would have to be for an offer to purchase or for a refinance (pre-approvals would not qualify)
- I can only speak for TD but it looks like we are still reviewing our guidelines for conventional mortgages and I will update once I have more information

So, in summary, if you enter into a purchase agreement or apply for a refinance before July 9th you can take advantage of existing rules....after the 9th you are looking at 80% max for a refinance and a max of 25 yr amortization for insured mortgages (purchase or refinance transaction).

Hope that helps..

_________________
Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

I appreciate the clarification Christina. I guess there are a lot of mortgage persons who haven't figured it out either. The big bank I called said there is no way unless we close in two weeks.

_________________

No problem....it often takes the banks time to react and adjust. We should have more details soon.

_________________
Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

If a client has a 35 (or possibly even 40) yr amortization they will not be effected......in 5 yrs they would have 30 yrs (or 35) yrs remaining. They will only be effected if they refinance the mortgage.....they can even transfer to another lender and it will move over as is.

_________________
Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

As long as the mortgage is submitted an approved before July 9th, the closing can be after that date as long as it is before December 31st, 2012.

Make sure you DON"T wait until the last minute to submit however, as the last two times CMHC made these changes, they started turning down applications early, even though they were within the the guidelines.

It is possible that the bank you were speaking to has implemented their own regulation requiring the mortgage to close by July 9th. It is also entirely possible that the employee you were speaking with has misinterpreted the regulation leading him/her to inaccurately believe that it must close by July 9th.

_________________
Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

Follow me on Twitter! http://www.twitter.com/paulmeredith