If you have a Home Equity Line of Credit a re-advancable loan changes are coming this fall.
In August OSFI announced the following changes, which will take effect at the end of 2023:
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- The maximum loan-to-value (LTV) limit for what OSFI calls Combined Loan Plans will be reduced from 80% to 65%. Combined Loan Plans are more commonly referred to in our industry as re-advanceable mortgages because they include home-equity lines-of-credit (HELOCs).
- The maximum LTV limit for reverse mortgages will be capped at 65%.
If you have not taken out a HELOC on your home, now would be the time to do so. You want to do this when the value of your home is the highest – so you would be taking the most amount out. YOU DON’T HAVE TO PULL OUT THEM MONEY ON THE LOAN, IT WILL END UP AS A CHARGE ON YOUR TITLE – IT IS THER WHEN YOU WANT TO USE IT.
Just wanted to clarify that.
If you are looking at purchasing a new home, a second home, an investment property in the next year, reach out and I can helop guide you through the process.
It can be a bit confusing for the regular person to understand, so check out this short video for how it will affect you.