LTV: Maximum available:

• 70% UK Bank for non-residents vacation / investment property (Min loan £100k)
• 75% Canadian Bank for non-residents or new immigrants residential property
• 75% Canadian Bank for commercial property, farm / rural property & residential investment property
• 95% Canadian Bank for residents with additional insurance

Rates:

• > 50% LTV UK Bank Canadian Dollar loan LIBOR + 1.99%
• 50%-60% LTV UK Bank Canadian Dollar loan LIBOR + 2.09%
• 60%-70% LTV UK Bank Canadian Dollar loan LIBOR + 2.19%
• > 75% LTV Canadian Bank PRIME Rate (currently 2.25%) + 0.85% for non-resident / new immigrant

Term:

Max term is 30 years, but max age at maturity to be 70 years for UK lenders. Max Term 35 years for Canadian lenders on residential property. On commercial ,farm, rural & investment property Max term is 25 years. On leasehold property there must be at least 40 years useful life in property at maturity.

Affordability:

All mortgages require full documentary evidence of income and expenditure. In Canada the Gross Debt Service Ratio (GDSR) is the percentage of gross annual income required to cover payments associated with the principal residence (mortgage principal and interest, taxes, secondary financing, heating, and 50% of condominium fees, if any). The GDSR should not exceed 32% of gross annual income. The Total Debt Service Ratio (TDSR) is the percentage of gross annual income required to cover payments associated with housing and all other debts and obligations, such as payments on a car loan. The TDSR should not exceed 40% of gross income.

Products:

Repayment and interest only mortgages available. Repayment mortgages can be at a fixed rate from a Canadian bank for up to 25 years. Fixed rate mortgages start at a rate higher than the current variable rate but at times of low rates like today can be a good buy. Shorter Terms are at lower rates than longer terms eg 10 years 5.25% and 25 years 9.35%. Over the past 10 years variable rate mortgages have proven cheaper.

Interest only mortgages are available from Canadian banks with an interest only period from 3-10 years after which they switch to repayment for the term of the loan. From UK lender sterling or dollar interest only mortgages are available for 30 years at a premium of 0.2% on the margin.