Number of Units |
1-4 units, one of which must be occupied by the owner |
Maximum Loan-To-Value Ratio
(LTV) |
- 1 unit: 95%
- 2 units (eg: duplex): 92.50%
- 3 or 4 units: 90%
|
Qualifying Interest Rate |
The interest rate used to determine borrower eligibility is determined as follows:
- Loan term less than 3 years---the greater of the lender's 3 year posted rate or the contract rate (or VRM cap).
- Loan term 3 years or more---the contract interest rate (or VRM cap).
- Standard Variable Rate Mortgage (VRM), regardless of loan term: the lender's 3 year posted rate.
|
Maximum Amortization Period |
Maximum amortization period of 25 years. |
Minimum Loan Term |
6 Months |
Hi-Ratio Application Fee |
$185.00 |
Insurance Premiums
|
Loan To Value ratio
Up to and incl. 65%
Up to and incl. 75%
Up to and incl. 80%
Up to and incl. 85%
Up to and incl. 90%
Up to and incl. 95%
|
Premium Amount
0.50%
0.65%
1.00%
1.75%
2.00%
3.25%
|
*Standard Variable Rate Mortgages are subject to a 0.25% surcharge
|
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Minimum Equity |
- Minimum equity of 5% from the borrower's own resources is required.
- Gift down payments from an immediate relative are acceptable and need to be confirmed in a letter from the donor. Gift money needs to be in the borrower's possession 15 days prior to the closing date.
- Lender needs to verify that the borrower's ability to cover closing costs of at least 1.5% of the purchase price. If the closing costs are to be borrowed, the loan repayment is to be included in the Total Debt Service (TDSR) calculation.
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Debt Servicing Ratios |
- Gross Debt Service (GDS) ratio: The borrower can commit up to 32% of the gross household income toward the payment of principal + interest + property taxes + heat. For condominiums, this formula includes 50% of condominium fees.
- Total Debt Service (TDS) ratio: The borrower can commit up to 40% of gross household income toward housing obligations and other debts.
- When the property has one to three rental units in addition to the owner-occupied unit, TDS formula is:
(principal+interest+property taxes+heat + payments on all other debts) X 100
Divided By:
gross household income + up to 50% of confirmed gross rental income
- For GDS and TDS calculations, principal and interest payments are calculated on total insured loan amount, including mortgage loan insurance premium where applicable.
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Maximum House Price
|
Maximum house prices apply to LTV's that are greater than 90%
|
Previous Bankrupt
|
- Must be discharged a minimum of 2 years with re-established credit. A mortgage broker can assist you in re-establishing your credit.
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