Borrowed Down Payment

Product Description:

This program is suited for home buyers who wish to purchase a home where part or all of the down payment is from borrowed sources.

Purpose:
• Mortgages in first position only
• Insured
• Purchase
• Purchase Plus Improvements

Property Type:
• Owner Occupied
• Partially Owner Occupied
• Maximum 2 units, where one is owner occupied

Terms:
• 3 Year Fixed closed
• 4 Year Fixed closed
• 5 Year Fixed closed
• 5 Year ARM closed

Rates:
• Standard insured 5 year fixed, or as per terms above. Contact broker or broker’s website thebroker.ca/mortgage-rates/ for up to date rates. Email us to be added to our rate emails.

Default Insurance Premium (on LTV of : 90.01 – 95.00%):
• Premium Rate: 4.50%
• Top-Up Premium: 6.60%

LTV:
• 90.01 – 95.00% LTV

Minimum Loan Amount:
• $50,000

Maximum Loan Amount:
• Insured / Insurable: $924,999

Amortization:
• 5 – 25 years

Borrower Qualification:
• Insured, Insurable
• Credit: Minimum score of 650 (Equifax) or higher. Minimum of 2 years history reporting on credit bureau, and no late payments in the last 36 months. No previous bankruptcy or consumer proposal
• Strong employment history
• Maximum GDS/TDS ratios allowed is 39%/44%
• Repayments must be included in the TDS calculation (ex: Unsecured LOC at 3% of balance, Credit Card at 3%, Personal Loan at actual payments)
• Qualified on the greater of Contract Rate + 2% or 5.25%
• Guarantors are to occupy the subject property

Down Payment:
• Any portion of the down payment may be borrowed.
• Repayment of borrowed funds to be included in the TDS per standard Debt Servicing requirements.
• Eligible sources are to be arm’s length to the transaction and can include but are not limited to:
— Personal loans
— Lines of credit
— Credit cards
— Gifts from non-immediate family (considered borrowed)
• Ineligible: Sources of down payment which are not arm’s length to the transaction are not eligible. These can include but are not limited to: loans or incentives from the builder, Realtor, mortgage broker, solicitor or vendor, or any loan to the borrower that impacts the property selling price.
• Required down payment amounts:
— Property value up to $500,000 – 5% down payment required
— Property value > $500,000 and < $1,000,000 – 5% down payment on the first $500k, with additional 10% down on the portion of the home value above $500k

Broker fees:
• No broker fees to pay with this program

Ineligible Products:
• Business for Self (Alt. A) Program
• Family Plan Program
• New to Canada Program
• Vacation / Secondary Homes Program (Type B Properties)
• Investment Property Program
• Second Mortgage Program

Ways to apply:
• 24/7 secure online application at TheBroker.ca
• Back up application link at Sash.cc
• or scan the QR code in the email signature below

Don’t go through the mortgage process alone. For more information on this program, contact TheBroker.ca Ltd. today. We offer no strigs attached free consultation! We are ready to assist you every step of the way. For any questions or further assistance, feel free to reach out to us via our website or call us at (519) 252-9665. Your path towards homeownership starts here. Let us be your guide.

Please note that this information is current as of the time of writing and is intended for general informational purposes only. It should not be relied upon as financial advice. Always consult with a mortgage professional for advice tailored to your specific circumstances.

This article was brought to you by TheBroker.ca Ltd., a licensed mortgage brokerage. Our licensing status with the Financial Services Regulatory Authority of Ontario (FSRA) can be confirmed through this link.

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