More changes to mortgage rules!

October 2nd, 2012

Effective October 13, 2012, the following changes will be made by lenders who follow the Bank Act, the Trust and Loan Companies Act, and the Cooperative Credit Associations Act (i.e. banks, trust companies, co-op associations…):

1 – Maximum LTV on HELOC products will be reduced from 80% to 65%.

2 – 0% Cash Down (or Cash Back) programs will be eliminated.

NOTE – Our brokerage does have access to lenders who do not follow any of the above acts, and we still have access to 80% LTV HELOCs and 0% Cash Down products (they won’t be offered by any of the major banks after Oct 13).

Kevin Somnauth, CFA
First Toronto Mortgage (

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