October 13th is D Day for 100% Financing and 40 year Amortizations
0n July 9, 2008, CMHC announces they would
no longer be insuring mortgages greater than 95% LTV and would no
longer offer the 40 year amortiations starting October 15, 2008.
>
> Already the major banks and credit unions have adopted this
policy and are not accepting pre-approvals or applications under
this program.
> However, we do still have a couple of lenders who have not
flipped that switch yet and will allow for LIVE applications under
the 100% financing and/or 40 yr amortizations, as long as the
application is into them by October 13, 2008.
>
> Who fits the 100% financing profile?
>
> Good credit - minimum credit score 680
> Good income and job stability
> Suitable property - no issues with the property like being a
leaky condo
> Must be a 1st mortgage
> You still need to provide proof that you have 1.5% of the
purchase price for closing costs to cover laywer fees and other
expensses
>
> If you do not have the traditional 20% of the purchase price
to put down, you will be required to purchase mortgage insurance
through your lender via a mortgage loan insurance provider such as
CMHC, Genworth or AIG. Mortgage insurance protects your lender if
you default on your mortgage.
>
> The good news is that there are other options to making Home
Ownership a reality
>
> - 5% Down
> - Felx Down (borrowing your 5% downpayment)
> - Up to 5% Cash Back (lender charges a higher rate of
interest)
> - Purchase Plus Improvements
> - 30 and 35 Extended amortizations
> - Self Employed stated income (proof on business for min 2yrs
and good credit required)
>
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