Christine Buemann Mortgage Broker

Check out my short video on the new mortgage rules coming in January!

The Government has just released the final version of Guideline B-20 . The most significant change that they have added is the "stress test' to uninsured mortgages. What is an uninsured mortgage? One where there is no default insurance secured to the mortgage. If you are putting less than 20% down, your mortgage currently has to be insured through CMHC, Genworth or Canada Guaranty. What most consumers don't realize is that even when putting more than 20% down, many lenders have still been obtaining this default insurance, they just cover the cost it. This is called portfolio insurance and it essentially allows lenders to finance mortgages with lower interest rates to the consumer . As of last year's set of rule changes, the following types of mortgages can no longer be insured: Refinances Rental properties Properties valued over $1M Mortgages with longer than 25 year amortizations Mortgages with 20% down where the contract rate is required to qualify ...

More breaking news on the mortgage front! The BC Government announced today that they are rolling out a program for First Time Buyers which will match 50% of their down payment up to $37,500. This would be by way of a second mortgage. It will be interest free for the first 5 years however the payments will have to be included in the debt ratios upon application. Timeline: Applications will be accepted as of January 16, 2017, with loans advanced from February 15 to March 31, 2020. To qualify under the BC Home Partnership Program, all applicants who will be registered on title must: • Reside in the home • Be a first-time homebuyer • Be a Canadian citizen or permanent resident for 5 years • Have resided in BC for at least one year • Have a combined gross income of $150,000 or less In addition, for the property to qualify under the BC Home Partnership Program, it must be: • a legal, self-contained, mortgageable residence (not rental or recreational) located in ...

As the dust is settling from the last set of rule changes in October, a more significant set of changes took effect yesterday. The overall impact that they will have is still being speculated by economists all over the country. Every lender has been scrambling to put together new processes and strategies for implementing their new guidelines. Lenders have been changing rates / policies daily so please bear in mind that their turnaround times will likely be a little slower with all banks for the short term. Here are some of the most significant changes we have seen over the last few days: Some lenders have discontinued 30/35 year amortizations, refinances and rental purchases altogether Most lenders have started charging a higher rate for refinances, 30 year amortizations and rental purchases Some lenders have started doing risk based pricing where they require minimum credit scores to have access to certain products Most lenders are cha...

Last week, CMHC announced that it will be taking away 2 of their programs effective May 30, 2014. They are the Second Home program and the Self-Employed without traditional income verification programs. Here are the key components of the change: ·          You will now only be allowed to have one CMHC insured mortgage at a time ·          If you are self-employed, you will now need to provide the standard documentation   to support your declared income   Some scenarios of people it will affect the most are: ·          If you have a current CMHC insured mortgage and you wish to purchase another home and keep your current property as a rental ·          If parents wish to co-sign for a child however they already have a CMHC insured mortgage on their home ·         ...

On June 27 th , CMHC published their newly defined Debt Ratio Standards. These are the guidelines for calculating debt ratios and confirming income documents. These changes are set to be implemented by December 31 st of this year. Many lenders have already adopted some of these changes however, Mortgage Brokers currently have access to numerous lenders who are still being flexible with their calculations. Please read the CMHC release for the full details   here . Here are the topics of discussion: Income ·          Variable Income: No change. The average of the last 2 years unless it’s declining, then the lowest. ·          Self-employed Income (without traditional documentation to support income verification): No more “stated income” where the take the client’s word on their income. Must have documentation to support it. Most lenders have already adopted these policies. ·   ...

There have been many changes in the mortgage world in the past 3 years, more specifically in the past 6-12 months. There are many changes to lender policies that have unfortunately moved qualified buyers to a position where they cannot qualify for a mortgage or perhaps have fewer options. There was a well written article in Canadian Mortgage Trends last week ( please take a moment to read it here ) and here are a few changes they have highlighted: ·     Some lenders now factor in a monthly payment for secured credit lines with  zero balance.    *this is by far creating the most issues ·     On revolving unsecured credit, monthly payments are being set at 3% of the outstanding balance . ·     Many lenders now calculate heating costs using a specific formula based on property size . ·     Conventional variable-rate mortgages and fixed terms less than 5 years are now qualified using the B...