For residential home mortgage holders that had an insured mortgage in place prior to the rule changes, they potentially can still move their mortgage to another lender and retain their insured mortgage amount above 85%, provided that the amount of financing and amortization period do not change.
The major challenge with this is that most lenders have now adjusted their programs and will not consider a refinance of any type above 85% loan to value.
For those that want to refinance their current mortgage today and need greater than 85% loan to value, there are a few private mortgage lenders that will go up to 90%, but the cost is going to be considerably higher.
Another option to consider is a cash back mortgage.
Because the mortgage lender is providing cash back on the amount of the mortgage required, a borrower can get pretty close to 90% loan to value on mortgage products that are still pretty well priced once you take into consideration the cash back portion.
I more detailed explanation and example of a cash back mortgage strategy can be found at http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2011/04/90-insured-refinances-livesort-of.html
This can definitely be a viable option for squeezing out some additional funds out of your property without compromising on rates.
In order to know if this can work for you and what amount of cash back you may be eligible for, you’re best approach would be to work through an experienced mortgage broker that can identify the most relevant cash back mortgage programs and help you with the math so you’re clear on what the effective cost of financing will be and how your cash flow will impacted on a monthly basis going forward.