Some interesting news coming in that could affect you,as a buyer
Thanks Cory Lewis from Jencor for the info
Good Monday Morning!
The countdown is on everyone, and although today you can still get approval on a readvanceable mortgage / HELOC at 80% Loan-to Value, these may no longer be available as of September. Many banks and lenders will cut their LTV maximum for HELOCs by the end of August if they haven’t already. New underwriting guidelines have been put in place by OSFI, requiring all federally regulated lenders to limit their HELOCs to 65% LTV.
OSFI has stated that already existing HELOC holders will not be affected by these new guidelines. So - if you or your clients want an 80% LTV HELOC get approved now, while you still can! Credit line rates are currently at Prime +.50% with most lenders (3.5%). Interest only payments for every 25K borrowed would be around $73 per month - a great option for consolidating higher interest debts.
Hope you all are better than well!
Cory Lewis | Jencor Mortgage Corporation