CIBC’s FirstLine division is re-launching its “Access” line of mortgages on September 8, 2008. These mortgages are designed for people who don’t qualify for a “prime” mortgage.
Here are the specs according to what we’ve seen so far:
- Max. Loan-to-Value: 80% (Note: FirstLine says, “we will be looking to expand the program, in the future to increase the maximum loan to value.”)
- Minimum Credit Score: 540+
- Required Documentation: Low to full documentation options will be available. The “Low Doc” self-employed borrower option requires the borrower to provide a self-declared letter, proof of self-employment, 12 months bank statements or NOA, and a 580 minimum credit score. In addition, a “reasonability” test is applied to the income. An extra fee also applies to low doc borrowers.
- Prepayment Privileges: 15% annually (anytime) + payments can be increased 15% (once a year)
- Amortization: Up to 30 years, or 35 with additional premiums
- Fees: 1/2% to 2% depending on credit score.
- Max. TDS: 45%
- Max Loan Amount: $600,000
If you’re a broker and want to submit an application under the old Access guidelines, have your deal and credit bureau submitted by September 8.
If you’re a homeowner and want more information on these products, contact any mortgage planner for assistance.
How is this different than their old (current) guidelines? Tighter or looser?
“The “Low Doc” self-employed borrower option requires the borrower to provide a self-declared letter, proof of self-employment, 12 months bank statements”
WoW! Congratulations Canada, Liar Loans have just arrived! Get yours now before the housing market takes off like a rocket (only to crash and burn later).
Wow, You’re several years late with this comment and don’t seem to know much about FirstLine’s products.
Guidelines under the new program are more restrictive than the old Access program and other lenders have offered no doc mortgages in Canada for a long time.
Hi Rob,
The guidelines seem tighter but the rates are better. Still awaiting full details…
Cheers,
Rob