To comply with the new mortgage regulation – TD has announced the following changes.
- All new pre-approval applications for High-Ratio mortgages maximum amortization of 25 years will apply – Effective immediately.
- For high ratio mortgages – the purchase price of the property must be less than $1 million.
- If the application was approved before June 21, 2012 with a firm purchase offer then there is no changes required.
- If the application is submitted after June 21, 2012 and before July 9, 2012 (must be a firm deal) then the 35 years rule will apply as long as the closing is before December 31, 2012.
- Any high ratio deals other than that mentioned above – new rule will apply.
- Deadline to submit application is before July 4th. 2012.
- If the refinance application for a high ratio mortgage is approved before July 9th and funding date is before the end of this year then the existing rule can be applied.