mortgage qualification


LeahCoss.ca Man 1 So Morey covered off what a conventional mortgage is, but there’s… and all of these changes that apply as we’ve been talking with high ratios, so the government mandated changes apply to things, the three different changes: the investments, the refinance and the amount of down payment that’s required. However, just because that only applies to 80 percent financing or more, so less than 20 percent down, there’s actually a lot of banks that are going to follow those guidelines all the way down the road. So it doesn’t matter if you’ve got 35, 40, 50 percent down, a lot of banks are still going to follow these new guidelines. The reason is kind of complicated. It involves how the banks raise their money in the markets and whatnot. But if they’re going to be doing that, you can see that these changes. And there’s a lot of lenders that are going to be following that. I’d say half or more. So it’s going to have a lot of impact for any loans of value even though the mandated change only implies to 20 percent down or less. So, rental income changes. In Vancouver this is huge because we’ve heard it’s the percentage of properties, especially condo market rentals. It’s definitely the most dramatic change. Ironically, this one isn’t even mandated. This is simply something that’s come down through CMHC and then all the other insurers have jumped on board with similar policies; not identical. So we had three different insurers we talked about. We’re not going to get …