| Number of Units | 1-4 units, one of which must be occupied by the owner | |
| 1 unit: 95% | ||
| Maximum Loan-To-Value Ratio | 2 units (eg: duplex): 92.50% | |
| (LTV) | 3 or 4 units: 90% | |
| Qualifying Interest Rate | The interest rate used to determine borrower eligibility is determined as follows: | |
| Loan term less than 3 years—the greater of the lender’s 3 year posted rate or the contract rate (or VRM cap). | ||
| Loan term 3 years or more—the contract interest rate (or VRM cap). | ||
| Standard Variable Rate Mortgage (VRM), regardless of loan term: the lender’s 3 year posted rate. | ||
| Maximum Amortization Period | Maximum amortization period of 25 years. | |
| Minimum Loan Term | 6 Months | |
| Hi-Ratio Application Fee | $185.00 | |
| Insurance Premiums | Loan To Value ratio | Premium Amount |
| Up to and incl. 65% | 0.50% | |
| Up to and incl. 75% | 0.65% | |
| Up to and incl. 80% | 1.00% | |
| Up to and incl. 85% | 1.75% | |
| Up to and incl. 90% | 2.00% | |
| Up to and incl. 95% | 3.25% | |
| *Standard Variable Rate Mortgages are subject to a 0.25% surcharge | ||
| Minimum Equity | Minimum equity of 5% from the borrower’s own resources is required. | |
| Gift down payments from an immediate relative are acceptable and need to be confirmed in a letter from the donor. Gift money needs to be in the borrower’s possession 15 days prior to the closing date. | ||
| Lender needs to verify that the borrower’s ability to cover closing costs of at least 1.5% of the purchase price. If the closing costs are to be borrowed, the loan repayment is to be included in the Total Debt Service (TDSR) calculation. | ||
| Debt Servicing Ratios | Gross Debt Service (GDS) ratio: The borrower can commit up to 32% of the gross household income toward the payment of principal + interest + property taxes + heat. For condominiums, this formula includes 50% of condominium fees. | |
| Total Debt Service (TDS) ratio: The borrower can commit up to 40% of gross household income toward housing obligations and other debts. | ||
| When the property has one to three rental units in addition to the owner-occupied unit, TDS formula is: | ||
| (principal+interest+property taxes+heat + payments on all other debts) X 100 | ||
| Divided By: | ||
| gross household income + up to 50% of confirmed gross rental income | ||
| For GDS and TDS calculations, principal and interest payments are calculated on total insured loan amount, including mortgage loan insurance premium where applicable. | ||
| Maximum House Price | Maximum house prices apply to LTV’s that are greater than 90% | |
| Previous Bankrupt | Must be discharged a minimum of 2 years with re-established credit. A mortgage broker can assist you in re-establishing your credit. | |
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