1How much can I spend on housing and how much can I borrow?
Ans. All buyers will be limited to spending up to 35% of their gross income on housing, and can only borrow up to 42% of gross income once other loans are included.
2What is the mortgage rule?
Ans. Lenders typically want no more than 28% of your gross (i.e., before tax) monthly income to go toward your housing expenses, including your mortgage payment, ... Once you add in monthly payments on other debt, the total shouldn't exceed 36% of your gross income.
3The main changes to CMHC lending rules?
Ans. Gross debt service (GDS) ratios must be under 35, down from 39. Total debt service (TDS) ratios must be under 42, down from 44. Borrower's credit score must be at least 680, up from 620. Borrowed down payments will no longer be allowed.
4What does a mortgage advisor do?
Your mortgage advisor helps you choose the financing solution that best suits your needs. They're by your side at every step of the homebuying process and can help you get pre‑approved for a mortgage as early as your very first meeting.
5If a couple divorces or separates, what happens to their mortgage?
Ans. There are a few options:
The couple can sell their property and split the equity between them.
One spouse can assume the mortgage (i.e., accept sole responsibility for it)*.
One spouse can buy out the other and refinance the property
(get a new mortgage)*. *Subject to approval by National Bank.
The couple can sell their property and split the equity between them.
One spouse can assume the mortgage (i.e., accept sole responsibility for it)*.
One spouse can buy out the other and refinance the property
(get a new mortgage)*. *Subject to approval by National Bank.
6What is mortgage security?
Ans. When you borrow money to purchase a home, you agree to use your home as collateral for the loan. This agreement is known as a “mortgage” (or “hypothec” in Quebec). If you default on your mortgage loan, the lender can take legal action to gain possession of your home or sell it.
The charge is registered at the land registry office. Each province has its own rules regarding the different types of mortgages and how they are registered.
The charge is registered at the land registry office. Each province has its own rules regarding the different types of mortgages and how they are registered.
7How do I use my RRSPs to buy my first home?
Ans. You can use your RRSP to buy a home through the Home Buyers' Plan (HBP), which allows you to withdraw funds from your RRSP to use as a down payment and repay the amount withdrawn later. You can withdraw up to $35,000 per borrower tax-free, and you have 15 years to pay it back, interest-free.
8What documents do I need?
Ans. If you have a meeting coming up with your mortgage advisor, plan ahead to make the most of your time.
We’ve put together a list of the documents you’ll need.
We’ve put together a list of the documents you’ll need.
9What is mortgage refinancing?
Ans. Mortgage refinancing lets you borrow against the equity in your home. Refinancing allows you to borrow up to 80% of the estimated value of your property, minus the balance of your existing mortgage. This can be an attractive option, because it provides a new source of credit to help finance your projects. Good to know: If the value of your home has gone up over time, your home equity will also have increased.
10How do I transfer my mortgage?
Ans. If you have a mortgage loan at another financial institution, it is possible to transfer it to National Bank.
In the case of an insured mortgage, only the balance of the loan can be transferred. However, you can add the transfer fee (if applicable) to your loan, up to a maximum of $3,000.
