CMT Team·Mortgage Broker News·March 20, 2011Scotia Drops Conventional Qualification Rate Scotia Mortgage Authority is joining RBC as one of the only big banks with flexible qualification rates for conventional mortgages. For those with 20%+ equity, Scotia will now qualify you (i.e. calculate your debt ratios) using payments based on the following rates: For Variable-rate mortgages: 3-year posted For 1- & 2-year fixed mortgages: Higher of 3-year posted or contract rate For 3- to 10-year fixed mortgages: Contract rate For the STEP Line of credit: 3-year posted (if standalone) or the highest above rate (if multiple terms) Previously, Scotia used the 5-year posted rate to qualify conventional mortgage applicants who chose a variable or 1- to 4-year fixed term. This policy change creates an advantage for Scotia in that it can now approve conventional clients whose debt ratios are temporarily elevated. Insured mortgages with less than 20% equity will still be qualified using the benchmark 5-year posted rate, as per federal guidelines. Rob McLister, CMT Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.