1. “Changes within our Mortgage Industry”

2. “Whoremembers…”
• 100% Financing
• 40 year Amortizations
• Cash back mortgages
• Qualifying for 1-4 year Fixed Rate Mortgages at contract rate
• Qualifying for Variable Rate Mortgages (VRM) at contract rate
• 95% Refinancing
• 5% down payment for the purchase of investment/rental
properties
• No limit for your Gross Debt Servicing (GDS) if your credit was
strong enough
• Relaxed lending guidelines when debt servicing (GDS/TDS)
• Secured and Unsecured lines of credit
• Heating cost for Non subject and subject properties

3. “Changes within our Mortgage
Industry…”
July 2008
1. The elimination of 100% financing
2. 40 year amortizations dropped to 35 years
3. Min required credit scores
4. Total Debt Servicing (TDS) to be maxed at
45%

4. “Changes within our Mortgage
Industry…”
April 2010
1. Variable Rate Mortgages (VRM) must be qualified at
the 5 year posted rate (4.99)
2. 1-4 year Fixed Term Mortgages must be qualified at
the 5 year posted rate (4.99)
3. Fixed Term Mortgages 5 years and longer continue to
be qualified at contract rate
4. A min of a 20% down payment Vs 5% for purchase
of investment properties
• Introduced new guidelines for Rental Add backs and
debt servicing property tax and heat when calculating
the TDS

5. “Changes within our Mortgage
Industry…”
March 2011
1. 35 year amortizations dropped to 30 years for
conventional mortgages
2. 90% refinance dropped to 85%
3. Elimination of mortgage insurance on
secured lines of credit

6. “Changes within our Mortgage
Industry…”
July 2012
1. 30 year amortizations dropped to 25 years for high
ratio mortgages
2. 85% refinances dropped to 80%
3. Ban mortgage insurance on any million dollar homes
• 20% min requirement for down payment
4. Elimination of cash back mortgages
• Federal guidelines
• Min requirement of 5% down
• Provincial guidelines
5. Introduction to flex down mortgage products
6. Tougher guidelines within stated income mortgage
products
7. Disappearance of true equity lending

7. “Changes within our Mortgage
Industry…”
February 28, 2014
1. CMHC increases default insurance as of May 1
5% 2.75% to 3.15%
• 15% increase
• Means avg of $5 per month
10% 2% to 2.4%
15% 1.75% to 1.8%
20% 1% to 1.25%
25% .65% to .75%
35% .50% to .60%
Non traditional DP - 2.9% to 3.35%
• These were the same premiums in ‘06 when CMHC
decreased insurance premiums

8. “Changes within our Mortgage
Industry…”
What’s to come . . .
1. Jim Flaherty out Joe Oliver in
• 73 yrs old
• Former Bay Street Investment banker
• Been serving as Natural Resource
minister since 2011
• No forecasted changes as budget is already
complete
• Expected to be in office only till next term

9. “Changes within our Mortgage
Industry…”
What’s to come . . .
2. Tightening of calculating and debt servicing (GDS/TDS) – OSFI
is now looking at MONOLINE INVESTORS
• Debt servicing secured lines of credit limit or balance
• 3 year post using 30/35 yrs amortization (limit)
• 4.6% divided by 12 (limit)
• Use interest only payments (balance)
• Debt servicing unsecured lines of credit
• 3% of the balance
• 1% of the limit
• Use what is reporting on the credit bureau
• Debt servicing heating cost on subject and non subject
properties
Expectations of STANDARDIZTION implemented by OSFI

10. “Changes within our Mortgage
Industry…”
2014 . . .
• Difficulty of financing clients with 5 or more properties
• Residential vs Commercial
• Who still does them?
• Which ones to use and why
• Down payment requirements
• Insurance Premiums
• Amortizations
• Rate
• Debt Servicing
• Utilizing Add backs, Offsets, DCR and Net Rent
calculators
Expectations of STANDARDIZTION with how the
above is debt serviced implemented by OSFI

11. “Changes within our Mortgage
Industry…”
“Around the water cooler . . .”
• REFINANCES from 80 % to 75%
• Min DOWN PAYMENT to be 10% vs 5%
• 25 year amortizations regardless of DOWN
PAYMENT
• Elimination of STATED INCOME for BFS
• Expectations of STANDARDIZTION of debt
servicing with all investors (monoline
lenders)

12. “Conclusion…”
• Additional changes are to come but what will they
look like
• Pending on Finance Minister
• Tighten
• Loosen
• We have always adapted to the environment that
we are faced with
• Network
• Like minded people
• Problem solvers
• Specialist and Experts in what they do

13. “ Lasting Quote…”
“It is not the strongest of the species that
survives, nor the most intelligent, but rather the
one most adaptable to change.”
Leon C. Megginson

14. The “GLMMortgageGroup”
 Co founder and Director of the Imani Orphan Care Foundation
• www.imaniorphancare.com
 Over 15 years of real estate experience & Real Estate Investor
 Member of
• Better Business Bureau
• Chamber of Commerce
• Mortgage Brokers Association of British Columbia
• Canadian Association of Accredited Mortgage Professionals
 Mortgage educator/key note speaker …
• Wealthy Investment Network
• Business Network International
 Regularly sourced for mortgage insights by the …
• Vancouver Sun
• Mortgage Broker News
 Ranked amongst the top 3% mortgage brokers in Canada by CMP magazine
 Finalist in 2013 CMP Canadian Mortgage Awards for Best Customer Service from an
independent office

15. Contact Information
www.geoffleemortgage.com
Twitter: @geoffleeca
Linked In: http://ca.linkedin.com/in/geoffleemortgage/
Email: geoff@geoffleemortgage.com
Phone: 1.778.552.3489