MORTGAGE TERMS YOU NEED TO KNOW
Insured Mortgage / High Ratio Mortgage = Less than 20% down payment
Non Insured Mortgage / Conventional Mortgage = 20% or greater down payment / equity
Bank of Canada Rate = the 5 year fixed posted rate (currently 4.89%)
Contract Rate = the actual rate offered by the lender to the consumer
Benchmark Rate/Qualifying Rate = Stress Test: Bank of Canada Rate OR Contract Rate +2%, whichever is greater
LTV (Loan To Value) = the size of a mortgage compared to the value of the property
OSFI has implemented 3 new mortgage rule changes starting January 1, 2018
The Red Door Mortgage Group - Mortgage Architects will continue to update you as new information arises on the regulatory changes announced by the Office of Superintendent of Financial Institutions (OSFI) on October 17th 2017.
We are starting with a series of 4 emails breaking down what you need to know.
The Red Door Mortgage Group - Mortgage Architects