- Underwriting during the interim period (June 21-July 8) may be especially vigilant, in an effort to weed out the marginal borrowers who spring from the woodwork
- For the next three weeks, the lenders with the best rates, or those that are less efficient or less staffed, could have abnormal underwriting delays (keep that in mind if you have financing condition deadlines)
- In most cases, mortgage rule changes are not a reason to rush a home purchase.
“CAAMP believes that Canadians understand the importance of paying down their mortgages. These changes, together with new OSFI underwriting guidelines…may precipitate the housing market downturn the government so desperately wants to avoid.”
a) Have a purchase agreement dated before July 9, and
b) Apply for a full mortgage approval before July 9.
As a side note, and slightly unrelated: This 80% uninsured LTV limit is rumoured to be one reason why TD shut down TDFS. The speculation was that OSFI didn’t like the fact TDFS was offering 85-90% LTV uninsured mortgages—albeit through a structure that was technically onside of the regs.
- You don’t increase your loan amount.
- Your loan-to-value doesn’t increase (which could happen if home prices dive), and
- You have a regular mortgage (i.e., it’s not acollateral charge mortgage).
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