Government Changes to Mortgage Financing
As you know, On January 17, 2011 the Government of Canada announced new guidelines for mortgage financing.
TD Bank will meet these requirements by making the following changes:
- Maximum amortization for High Ratio and Conventional mortgages reduced from 35 to 30 years
- Maximum Loan-to-Value ratio for refinance transactions reduced from 90% to 85%
For purchase transactions
For those who sign an agreement of purchase and sale, prior to March 18, 2011, will be apply for a 35 year amortization. The closing date can be after March 18, 2011. However, the agreement has to be signed prior to March 18, 2011 AND a mortgage application has to be submitted prior March 18, 2011.
For refinance transactions
For those applying for a refinance, a credit application has to be submitted prior to March 18, 2011 to refinance their mortgage up to 90% of the appraised value.
TD Canada Trust Mortgages