CTV Morning Live: Mortgage Minute August 28, 2018
Since October 2016, lenders have had the ability to tier their mortgage rates based on what loan-to-value (LTV) category you fall in- but what does that mean for you?
Since October 2016, lenders have had the ability to tier their mortgage rates based on what loan-to-value (LTV) category you fall in.
Non-insured mortgages are for mortgages under 80% LTV, 30 year amortizations, and qualify at your mortgage rate + 2%.
Insurable mortgages apply to mortgages under 80% LTV with 25 year amortization and qualify at the Bank of Canada qualifying rate which is 5.34% today. The default insurance is paid for by the lender and rates tend to be better than non-insured mortgages.
Insured mortgages are mortgage with more that 80% LTV, also known as high-ratio mortgages. The default insurance is paid by the clients. Once a client has paid the insurance on that mortgage, it keeps you within the insured mortgage rates even at renewal.
Contact your Mortgage Broker for more information.