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Line of credit in preparation for new mortgage rule

line of credit ahead of new mortgage rule with 30 second loan application

Jordyn & Ben own a little coffee shop

They heard about the tightened lending guidelines which into effect on January 1, 2018.

In preparation, they decided to get a line of credit.

Why Refinance Now?

Because as of January 1, 2018, lending guidelines will become increasingly more challenging. OSFI (Office of Superintendent of the Financial Institutions) announced yet another mortgage rule, requiring anyone refinancing or purchasing a home, to qualify at 2% above the obtained interest rate or at the posted benchmark rate (whichever of the two is greater).

So this made them call Dreyer Group Mortgage Brokers to secure a line of credit.

Business Owners Like Jordyn & Ben can refinance to access equity or secure a line of credit

If you or anyone you know owns a small business, now is the time to get prepared.

All small business owners or professionals should consider refinancing to accommodate a flexible line of credit in preparation for what could be a bit of a bumpy ride.

Not too many outside financial factors are under the control of a small business. But you can make decisions to prepare for changes in the financial landscape. One of these is the preparation of the new refinancing guidelines that reduce the opportunity to obtain a line of credit for your small business. 

You should act by completing your line of credit application. It takes just 30 seconds here.

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Example

Business owners will be required to qualify for a rate 2% higher than the one secured for them. For example, if a small business receives a 3.24% fixed rate mortgage, they now have to qualify at 5.24%.

Stated Income

In addition, very few lenders are now doing stated income for self-employed. Meaning, there are limited lenders approving self-employed professionals – and that could reduce even more in the near future.

Equity Lending

Finally, very few lenders are doing equity lending. Meaning, lending money based strictly on the value of your home with very little documentation required. While there are some lenders, the guidelines continue to narrow. Coupled with the new lending guidelines, self-employed/professionals looking for equity lending should consider getting approved before January 1, 2018.

Be like Jordyn & Ben in just 30 seconds.

See them in their nice little coffee shop...