Borrowed Down Payment Mortgages

5% Borrowed Down Payment “Flex Down” Mortgage – this is another alternative that you can consider.

Borrowed Down is considered when any funds you would get for a down payment, would have to be repaid.
The best type of borrowed down payment would be in the form of a line of credit from your bank due to its low, interest only payments. Also the term is always completely open, which allows you to pay it down without any penalty.

To see if your TDS and GDS ratios would qualify with the borrowed funds, you need to tell Nikki how much your monthly payments on the loan would be. She will incorporate this into your application and let you know if you qualify!

Offered through CMHC:
The terms of this mortgage are the following:
• Purchases Only
• Minimum Credit Score – 650
• Up to 35 year Amortization
• Must show 1.5% in closing costs available – lender needs to confirm you have additional funds available for legal fees, moving, unforeseen events, etc.

*CMHC Premium is 2.9% – add an additional .20 per 5 year increase in amortization
For example:

Based on a $200,000 mortgage - CMHC Premium is $5,800 rolled in based on a 25 year amortization. If you want to increase your amortization to the maximum 35 year amortization, it would be calculated like this:
$200,000 x 2.9% + .4%= 3.30% $6,600 premium rolled in