So still some confusing information out there on the new guidelines. As I posted earlier, the maximum time you can amortize (or spread) your mortgage payments is 30 years effective March 18th. That means you must have your purchase or refinance completed by March 17th. Completion is the date that the LEGAL mortgage documents are signed at the lawyers/notary and new funds advanced and the title to the property is registered at Land Titles Office. That’s not to be confused with the mortgage term. That is just the length of your contract with the lender and confirms the rate and agreement during that time.
There are still some lenders that will allow longer amortizations. That catch is that you have to have at least a 20% down payment.
If you are an employee you can still buy a home with a 5% down payment. Gifted down payment from an immediate family member is still allowed. Also, there are still a few lenders that are able to to provide a FREE down payment and meet the federal requirements. Credit and job stability make it tough to get into this program but it is available.
Self-employed home buyers need a minimum of 10% for a down payment. It must come from their own resources so it cannot be borrowed or gifted.
I know it sounds a little complicated. Honestly though it’s up to your mortgage professional to keep up on the guidelines and know which bank offers the best product for the type of mortgage you need.