Effective March 14, 2011

Maximum Amortization Period

High Ratio Business

• For high ratio deals, (loan to values greater than 80%) the maximum amortization has been reduced to 30 years from 35 years.

Conventional Business

For conventional deals, (loan to values less than 80%) the maximum amortization will remain at 35 years for Dominion Mortgages

Refinance Maximum Loan to Value

• The maximum loan to value for 1-4 unit residential properties will be reduced to 85% from 90%. 

How does this impact my existing borrowers that are looking to straight port? 

• For high ratio deals with amortizations greater than 30 years borrowers will maintain their existing amortization on a straight port (no additional funds).
• The loan to value maximum will remain at 95% for port transactions.  Product and program specific guidelines apply.

How does this impact my existing borrowers looking to refinance or port and increase?

• In some instances, but not all, for high ratio transactions borrowers with amortizations greater than 30 years will be permitted to blend their amortization.  The maximum loan to value for refinance transactions will be 85% and the maximum loan to value for a port and increase will remain at 95%.  Product and program specific policies apply.

• Blended Amortization example:
  • Original high ratio loan: $200,000 with 38-yrs amortization remaining (original 40yrs – 2yrs elapsed = 38 remaining)
  • Formula: (200,000 x 38 + 100,000 x 30) / (200,000 + 100,000)
  • Blended Amortization = 35 yrs