Borrowed Down Payment Mortgages
Saving for the down payment can be super hectic for any borrower. The typical down payment can be as low as $10,000 in Manitoba.Saving for the down payment can be super hectic for any borrower. The typical down payment can be as low as $10,000 in Manitoba. Add to this the costs of closing, application fees, and other costs, and it takes nearly 2 years to save the down payment for it.
In Canada, The amount of a down payment in a Flex Down Mortgage is flexible based on the property value. For example, for a property valued under or equal to $500,000, 5% down payment is required. For any property greater than $500,000 but less than $1 million, 5% down is required for the first $500,000 with an additional 10% required on the rest.
- Unsecured Lines of Credit,
- Personal Loans,
- Credit Cards,
- Gifts from non-family or non-immediate family members.
immediate family members are defined as a father, mother, child, brother, sister, grandparent, legal guardian, legal dependent.
In order to qualify, a Flex Down Mortgage product must be on the first mortgage and meet the following criteria:
- You must have a credit score of 680 or higher is recommended
- No previous bankruptcy or consumer proposal.
- A low debt load is helpful.
- Maximum 25 year amortization
The applicant must debt service or account for the payment in their mortgage application and the lenders will factor in the payments. This will affect the purchase price.
Contact us today if you would like to know more about flex down mortgages.
