Recent Guideline Changes

5 Feb    Mortgage News

Recent Guideline Changes


There has been some recent guideline changes that we thought we would share. Please keep in mind that each lender puts their own spin on every rule.

– Some lenders now factor in a monthly payment for secured credit lines with a zero balance. What does this mean? Even if you are not using your line of credit, a payment has to be factored into your total debt service ratio!

– On revolving unsecured credit, monthly payments are being set at 3% of the outstanding balance. This means that interest-only or minimum payments can no longer be used when qualifying clients.

– Calculating expected heating costs will now factor in the property size. So, homes over 3,500 sq ft have a “heat factor” of $115-220 factored in which may reduce a borrower’s potential mortgage size.

A bank may simply decline your application if you don’t meet their qualifications. As your dedicated Mortgage Consultants, we have access to a multitude of lenders to suit your needs! Contact us for a Free Mortgage Consultation! 250-851-8888