Change 1: Less debt as a percentage of gross income

Instead of being able to use up to 39% of gross income on housing expenses and borrow up to 44% of gross income (including credit card, car payments etc), a buyer with a good credit rating and reliable income will be restricted to using 35% on housing expenses and borrow 42% (including credit cards etc).

Change 2: New minimum credit score established

At least one mortgage applicant (or their guarantor) must have a credit score of 680, up from 600.

Change 3: No more borrowed down payments

The ability to use unsecured personal loans, lines of credit or even credit cards is eliminated. Borrowers must use “their own resources” which can include savings, equity from a property sale, a financial gift from a relative, money borrowed from other liquid financial assets or against other real property, or a government grant.

The stress test remains unchanged.

With these new tighter restrictions, Vancouver Rent to Own stands ready to help you sidestep the difficulties imposed by the banks and obtain the home you’ve been striving for.


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