West Coast Ivana Blog

If you have a Home Equity Line of Creditre-advancable loan changes are coming this fall.

In August  OSFI announced the following changes, which will take effect at the end of 2023:

    1. 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).
    2. 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.