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100% Financing and Cash Back programs still available OAC. |
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100% Financing and Cash Back programs still available OAC. |
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CMHC Drops 100% Financing and 40 Year Amortizations- By Oct 15th, 2008
• 100% financing (5% will now be the minimum down payment on an
insured mortgage)
• 40 year amortizations (35 years will be the new maximum on
insured mortgages)
The government will also require the following with all new
mortgages it insures:
• A new 620 minimum credit score requirement
• New loan documentation standards
The new rules will take effect October 15, 2008. This affects CMHC
insured mortgages as well as mortgages insured by Genworth, AIG,
etc. Insured mortgages are generally those with less than 20%
down.
Certain conventional mortgages are also insured, however, in a statement from the Department of Finance said,
"Today’s announcement marks a responsible and measured approach by
the Government to ensure Canada’s housing market remains strong and
to reduce the risk of a U.S.-style housing bubble developing in
Canada."
These new rules pertain only to new, government-backed insured
mortgages. This will not affect existing mortgages.
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