BORROWED DOWN PAYMENT

Borrowing Your Down Payment
For Your Home

Flex Down Payment:

The Flex Down Payment Mortgage has been developed for homebuyers who have excellent credit history (Score of 650 or greater) but have not accumulated the required down payment. This product is available for mortgage loans between 90.01% and 95% LTV inclusive.

The client can obtain the down payment sources other than saving it up. The Permitted sources are:
  • Lender cash back incentives or loans
  • Equity borrowed which can include personal loans, lines of credit or credit cards
  • Gifts or grants from any party that is arm’s length to the property purchase or sale transaction
  • 100% sweat equity from either the borrower or contributed by another party that is arm’s length to the property purchase or sale transaction

Sources that are not permitted include:

  • Builder incentives or loans;
  • Realtor or mortgage broker incentives or loans to the borrower that impact the property-selling price
  • Loans or gifts from the property vendor
  • Rent to own payments that are not in excess of the current market rents
  • Third parties that receive payment from the vendor or builder

Borrowers Qualifications:

  • Maximum GDS/TDS:
  • Where beacon < 680: GDS = 35%; TDS = 42%
  • Where Beacon 680+: TDS = 44%, there is no GDS requirement.
  • Where down payment is borrowed, repayments must be included in the TDS calculation.
  • No 3rd party or non-resident guarantors for qualification purposes. Non-residing co-borrowers are acceptable (must be an immediate family member and on title).
  • Borrower demonstrates ability to cover closing costs, including mortgage insuranceapplication fees and sales taxes if applicable, of at least 1.5% of the purchase price.

 

 

 

 

 

 


www.mymortgage.ca

PHONE: 1.866.509.1090
FAX: 1.866.392.3672

Head Office
Unit 207, 4603 Varsity Drive NW

Calgary, AB. T3A 2V7

Canadian
Mortgage Rates

Term Rate (%)


as of Feb 23, 2012

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