New Mortgage Rules Made Easy

So here is a simple explanation of the new mortgage rules:

Clients purchasing a residence for their own personal use

1. CMHC or GE insured mortgage require 5% down payment (1st time buyers)
2. To avoid CMHC you need 20% down payment (not 25%)
3. To qualify for a variable rate mortgage they must quality by using the 5 year fixed rate regardless of what you go for

Clients purchasing an investment property

1. CMHC will no longer insure rental properties
2. Clients must have 20% down payment (not 25%)
3. The financial institution will only use 50% of the rental income to service the debt

So if you looking to buy either 1st time home or investment now is the time!

Best regards

Dean Birks

Royal LePage Prince George

Phone: 250-612-1709

Fax: 1-888-870-4132

Prince George Real Estate

Posted via email from Prince George Real Estate