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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.