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If you are considering a future HELOC or readvanceable mortgage equalling 66%-80% of your home value, you may want to act soon.

Rumour has it that some banks may start cutting back on their HELOC lending limits by the end of this month.

These moves relate to OSFI’s new B-20 underwriting guidelines, which require federally regulated lenders to limit new HELOCs to 65% LTV, from 80% today.

Banks must comply with this new guideline by the end of their fiscal years. That makes the official implementation deadline October 31st, 2012 in most cases. But don’t count on lenders waiting until then.

OSFI says that existing HELOC holders will be grandfathered. So if you are a client who need a 66%-80% LTV HELOC from a bank, you will need to get approved while the getting’s good.

If you have a sizable downpayment of 35% or more than these changes will not affect you.

Click here to read more key points from CanadianMortgageTrends.com.

-Cory Kline (Mortgage Advisor from Neighbourhood DLC) cory@ndlc.ca or 705-794-1283