Last chance for 100% financing

On July 9, 2008 the government of Canada anounced it will no longer be insuring 40 year amortization or 100% mortgages effective October 2008. They have also announced there will be new minimum beacon scores for insured borrowers and more stringent confirmation on income. This potentially affects the stated income business for self borrowers. Canada Mortgage and Housing (CMHC) has not released anything yet but we anticipate they will do so soon.

This means that borrowers must have 5% down and their mortgage can only be amortized up to 35 years, as of October 15, 2008. If you know anyone that needs 100% financing they should be calling the link below now as the government will honour anyone up to October 2008.

"I have 3 lenders who are still accepting applications, the approval must be in by October 15/08 in order to qualify,: says Rita Cruse of Mortgage Alliance in Dundas, ON. "The criteria for acceptance is they must have good credit and they need to have the closing costs saved which is usually 1.50% of the purchase price. This is an excellent way of getting into home ownership, now is the time to see if you qualify."

If you're interested, contact Rita at: rcruse@tmacc.com as soon as possible. You can also reach her via her website at www.mortgagealliance.com/ritacruse.

Mortgage Insurance is a credit risk management tool that protects mortgage lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender will submit a claim to the mortgage insurer to recover its losses. The law requires federally regulated lenders to obtain mortgage insurance on loans where homebuyers make downpayments of less than 20 percent of the purchase price. You can check out the article on this link:http://finance.sympatico.msn.ca/banking/mortgages/article.aspx?cp-documentid=8537625

Robert J. Morrow is editor of www.HamiltonHomeReview.com and a REALTOR(R) with Chase Realty Inc., Ancaster, ON