All lenders do not follow the rule of 600 Beacon Score for a mortgage application. The Lenders used CMHC Guidelines as Minimum Guidelines, the lenders are not forced to use those minimum guidelines.Most went with a 650 Credit score minimum. The TDS and GDS , for high ratio purchases ( less than 20% Down) mostly was 35/42. Most lenders used that as their limit. You did not qualify for the 39/44 unless your credit score was over 680.
The non traditional down payment issue is the Borrowing of the Down payment . I have not got the full scoop yet ,as some people borrow from a secured source like other real-estate owned and the cost of it is calculated into the application that CMHC is looking at. I will keep you posted!!!
This is more reason than ever to seek the advice of a Mortgage Broker!
Wasaga Beach, Collingwood, Meaford and Owen Sound.