Mortgage Changes in April

There are new mortgage lending rules that are taking effect April 9th and 19th. Here is an overview of the new policies:
Purchasing a Home
Any mortgage with less than 20% down payment and subject to mortgage insurance will be required to qualify at the 5 yr fixed rate. This is regardless if you select a variable or fixed rate for a shorter term or lower interest rate. The purpose of this change is to make sure that homebuyers will be able to afford their mortgage payments if interest rates rise in the future.
Home Refinancing
The amount that a home owner can withdraw from the value of their home is changing from 95% to 90%. For example, a home with a value of $300,000 the maximum amount will decrease from $285,000 at 95% to $270,000 at 90%
Investment Property(non owner Occupied)
The required down payment will increase from 5% to 20% of the purchase price.
Self Employed and 100% Commissioned Individuals
Under CMHC’s Self Employed No-income Qualifier program, a 10% down payment will be required for purchasing a home which is increasing from 5%. Home refinancing will be capped at 85% loan-to-value down from 90%.
If you have been self employed for less than 3 years or are a 100% commissioned, you can no longer qualify for financing under CMHC’s Self Employed NIQ. You will now be required to verify you income.