New Changes to Mortgages:
1. Helping home owners to keep more equity in their home, home owners can only finance up to 90% instead of 95% based on appraised value. This change is geared to keeping home owners from over extending themselves and, therefore, preserving more equity.
2. Mortgages for homes wherein the borrower does not live will require at 20% down payment up from 5%. This reduces speculation by buyers.
3. Borrowers who put down less than a 20% down payment, who want a variable 1 to 4 year fixed term, will require a higher income as they will have to qualify based on a five-year fixed rate. This change is geared to help ensure that home buyers can make their future mortgage payments.
There are further changes that your local mortgage specialist can advise you and your agents of, including more detail on how the above criteria will impact home buyers.
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