The maximum LTV ratio allowed for insured mortgages is 95%, so 5% deposit is required. B-Lender Mortgages come with higher rates but provide financing to borrowers can not qualify at banks. Borrowers may negotiate with lenders upon mortgage renewal to enhance rates or terms, or switch lenders without penalty. Longer mortgage terms over 5 years reduce prepayment flexibility but offer payment stability. Shorter terms around 1-3 years allow benefiting from lower rates whenever they become available. Mortgage interest expense is generally not tax deductible for primary residences in Canada. The Bank of Canada features a conventional type of loan benchmark that influences its monetary policy decisions. The First Time Home Buyer Incentive reduces monthly costs through shared CMHC equity without any repayment. The
Vancouver Mortgage Broker stress test requires proving ability to make payments in a benchmark rate or contract rate +2%, whichever is higher. The Home Buyers Plan allows withdrawing RRSP savings tax-free for the home purchase down payment. Mortgage Debt Consolidation oversees transferring high interest credit lines loans into secured lower cost property financing repaying faster through compounded savings. The maximum amortization period for brand new insured mortgages is 25 years by regulation.
