The Department of Finance’s new insured mortgage rules arrive on October 15. Originally, they were supposed to mandate a 620 minimum credit score. This has now been reduced to 600 after Finance Department discussions with industry stakeholders.
The government has also eliminated the 45% total debt service (TDS) maximum, and replaced it with a “principles based approach” according to CAAMP.
Here are two documents with more details:
- New Mortgage Insurance Guarantee Parameters – Schedule A
- Qualified Mortgage Lender Criteria – Schedule B
(Thanks go to CAAMP for providing this information.)
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Last modified: September 22, 2008
Do you have more information on what the “principles based approach” is ? Thank you.
Great, two steps forward and now 1 step back. The 45% debt service requirement was the right thing to do. Going back on it just moves us closer to the US system.