Toronto real estate. GREAT NEWS FOR TORONTO BUYERS!

Federal legislation just lowered threshold for conventional mortgages from 25 to 20% down payment. Lenders started to accept deals baled on new formula effective April 23d, 2007. It’s not clear yet will this proportion be applicable for secured line of credits arranged though bank branches. Also not every lender will adjust its respective equity or rental programs to new LTV proportion. But overall effect of new conventional vs. high ration deal definition seem to promise positive effect on affordability of real estate, especially in the GTA.Bill C-37, the new Canadian legislation that will replace aspects of the current Bank Act (which expires on April 24^th, 2007), went into effect April 20, 2007.

LTV increase for conventional loans from 75% LTV to 80% LTV

20% Down Payment = No Insurance Premium!

Manulife Bank is 'ready to do business' for Canadian homeowners who have as little as a 20 per cent down payment, with no high ratio premium required. The Bank's innovative Manulife One account, that includes a client's mortgage as well as other debts, is now available up to 80 per cent loan to value, without high ratio insurance.
    New federal legislation that came into effect April 20 moved the minimum downpayment requirement from 25 to 20 per cent. Previously, anyone wanting a mortgage greater than 75 per cent of their home's value was required to pay a lump sum premium to a third party insurance company to protect banks from
possible loan defaults. This premium ranged anywhere from one per cent to 3.25 per cent of the mortgage amount, based on the ratio of the loan amount to the value of the home.
    The change in legislation moved the maximum ratio available without paying a high ratio premium up to 80 per cent and Manulife Bank is among the first banks to offer this benefit to Canadians, and definitely the first to provide it in an account as innovative as their all-in-one account.
    "This is great news for prospective homeowners," says Roman Fedchyshyn, President and CEO of Manulife Bank of Canada. "The cost of a mortgage is daunting enough. So, to be able to eliminate this fee for some mortgages, including other debts, means keeping more money in the pockets of our customers. And, that is what Manulife Bank is all about."
  

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Toronto real estate. GREAT NEWS FOR TORONTO BUYERS!

Reviewed by citra
Published : 2007-04-25T14:45:00-07:00
Rating : 4.5