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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]

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Michael Camber
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.

Michael Camber

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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