UPDATE: Mortgage Changes For Non-Residents And More

Lots of changes as a result of the new rules the Canadian government implemented as of As of October 18th, 2016.  Liberty Village condo buyers have one less Mortgage financing option for Non-Resident buyers.

As of today, we lose the ability to fund non residents with 35% down and NO income or credit.

There are now 2 options for Non-Resident buyers:

Option 1) 50% down payment required

documents needed or not needed:
– Proof of down payment in a Canadian Bank account no later than 30 days prior to closing
– Primary residence only (no rentals)
– NO INCOME docs required
– NO CREDIT required
– Max Mortgage $750,000
– Max Amortization 25 years

Option 2) 35% down payment required 

documents needed or not needed:
– Full proof of income required (letter of employment, pay stubs and income tax returns)
– Full proof of down payment required (last 90 days bank statements)
– Letter of reference from a bank outside of Canada
– International Credit Bureau required or last 6 months bank statements
 Max Amortization 25 years
– No max Mortgage
– Rentals welcome (max. 2 properties in Canada)

***Also – Regaring the new Stress Test***

The NATIONAL BANK OF CANADA (NBC) WILL NOW APPLY THIS TO ALL MORTGAGES – EVEN THOSE WITH 20% OR MORE DOWN – as of now only the National Bank is doing this but we could see other lenders following suit.

Again this negatively affects a buyers max purchase power by approximately 20% (having to qualify based on the posted rate of 4.64% and a max amortization of 25 years)

If you are working with National Bank and  have 20% down… please note you can still get normal financing at many other lenders with NO stress test. For now.

Email me if you have any questions, Michael Camber [email protected]

mm
About Michael Camber (398 Articles)
Michael Camber is the #1 selling real estate salesperson in King West and Liberty Village. Since 2003 he has been helping his clients achieve all of their real estate objectives.

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