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Goodbye to 100%/40-year Mortgages

100-percent-mortgage So long to 100% financing and 40-year amortizations on insured mortgages.  The October 15 deadline is here and both are now officially gone.

If you want to buy a house with a good interest rate, you’ll now need at least 5% down and a credit score of 600+.

Gone as well are most readvanceable mortgages and HELOCs with loan-to-values over 80%.  These products had become quite popular because they allow borrowers the flexibility of redrawing paid-down principal–which can be used for renovations, investing, emergency funds, etc.

Canadian Economic Press writes more on the impact to borrowers (kindly including a few quotes from us)…