DID YOU KNOW?
- Minimum down payment is still 5% on first $500,000.00 and 10% on funds above $500,000.00. Example $600,000.00 purchase. Down payment is 5% on first $500,000.00 so $25,000.00 and 10% on next $100,000.00 so $10,000.00. Total down payment $35,000.00.
- High Ratio Mortgage Insured Mortgage Anything with less then 20% down is considered High Ratio so has to be insured with CMHC, Genworth or Canada Guaranty. There are currently three insurers.
- A High Ratio Insured Mortgage can only go up to a maximum purchase price of $999,000.00. If purchase price is over $999,000.00 then a minimum of 20% down is required. Conventional Mortgage
- Maximum amortization is 30 years. This is only available on a mortgage with 20% down or more. A Insured Mortgage with less then 20% down can go to a maximum of 25 year amortization.
- Most lenders A (Preferred Lenders) An A mortgage lender is a lender offering the best terms with the minimum down payment requirements so 5%. Lenders include Banks, Credit Unions, Trust Companies and Monoline Lenders. (Monoline Lender are mortgage lenders that just sell mortgages so do not sell credit cards, investments etc.) A lenders need a beacon score above 650. Even 700 on some products.
- A B lender is a lender who will work with borrowers who have damaged credit or borrowers who cannot meet the traditional income qualification. For example Self Employed borrowers who write off a lot of their gross income can fall under the B lending program. Although they do not have the Tax Return Net Income to support the mortgage they require under the program the lender will accept bank deposits. Under B lending a minimum of 20% down is required. (So if a self employed/commission borrower has less then 20% down and also cannot meet the income requirement for A lending they will need to seek a co signer if they want to obtain a mortgage.
- Rental Properties need a minimum of 20% down.
- Rental Properties with 5 or more units are considered under commercial financing.