Effective April 19, 2010, loans with a fixed rate term of less than 5 years and for all variable rate mortgages, regardless of the term, the qualifying interest rate will be the greater of the benchmark rate or the contract interest rate.
CMHC defines the benchmark rate as the Chartered Bank – Conventional Mortgage 5 year rate that is the most recent interest rate published by the Bank of Canada (the rate is currently 5.39%). This rate is set each Monday and can be found at The Bank of Canada.
For loans with a fixed term of 5 years or more, the qualifying interest rate will be used for qualification purposes.
So in other words, the 5 yr posted rate is the one that will be used for qualifying VRM mortgages after April 19th.
Have we got you interested in getting your first home? Apply now online. It is quick and secure. We will walk you through step by step in arranging your first home.
We guarantee to find you the lowest possible mortgage rate in terms of your situation. If we can’t at least match an offer made another financial institution we will give you a $50.00 gift card just for giving us a try. Really, what have you got to loose? Call us today to discuss your mortgage options. See terms and details of $50.00 give away offer.
Interested in learning more about mortgages? Subscribe to our news and articles blog on our website. This will give you up to date mortgage information brought directly to your email inbox. Call us toll free @ 1-866-RATE-033.
Sincerest Regards,
Paul Smith
Mortgage Agent
VERICO Designer Mortgages
www.BestRateGuys.com
FSCO Licence M09000027
VERICO Designer Mortgages
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment