There's still some confusion so this should help clear it up a bit:
1. VRM (variable rate mortgage) and fixed mortgage terms less than 5 years are now qualified on the bank posted rate when the LTV is 80% or higher on a purchase or refinance. Today this rate is 6.25%.
If you are taking a five year fixed rate or greater, the qualifying rate is the contract rate. Today around 4.5%.
2. Minimum down payment for rental units is now 20%.
3. Maximum LTV (loan to value) is now 90% on refinances and 85% for stated income (can’t prove income).
4. BFS (business for self) are required to prove their income after year 3 of business when using CMHC insurance for their mortgage. Genworth has not yet emulated this restriction.
5. Realtors, mortgage brokers and commissioned BFS must prove their income with NOA’s (notice of assessment) or use high ratio (CMHC or Genworth) and pay a premium.
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