• Mortgage insurance for 95% mortgages are now available to both first-time and repeat home buyers.
• Buyers using the program may consume up to 32% of their gross family income for payments of principle, interest, property taxes and heating, but their total debt load ratio cannot exceed 40% of their family income.
• Insurance premiums on loans above 90% of the lending value of the property will be 3.75% of the mortgage loan... however, this premium can be added to the mortgage.
• Price restrictions include a $300,000 ceiling on homes purchased in the Greater Toronto Area (GTA).
• The maximum amortization period is 25 years.
• Borrowers are required to demonstrate as the time of the application their ability to cover closing costs equal to at least 1.5% of the purchase price.
• Where the minimum equity requirement is being met by way of a financial gift, the funds must be in possession of the borrower 15 days before making an offer to purchase.

Source: ©Toronto Real Estate Board (TREB). Re-Printed by permission on TaraRosen.com