FLEX/BORROWED DOWN PAYMENT MORTGAGES
Don’t Have All Of Your Down Payment & Closing Costs Saved Up? We’ve Got A Mortgage For That!
Saving for your down payment can be daunting. With typical down payments in Manitoba being $10,000 or higher and then factoring in land transfer tax and closing costs in can take a home buyer 2year or more just to save up their down payment.
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. In order to qualify, a Flex Down Mortgage product must be on the first mortgage.
Other criteria:
- You must have a credit score of 680 or higher is recommended
- As well as having the minimum score there cannot be any previous bankruptcy or consumer proposal.
- A low debt load is helpful.
- Maximum 25 year amortization
For the Flex Down, a buyer could borrow from:
- Personal loans
- Unsecured Lines of Credit
- Credit cards
- Gifts from non-family or non-immediate family members
***immediate family members is defined as a father, mother, child, brother, sister, grandparent, legal guardian, legal dependent)
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.
contact form