Mortgage financing for Million dollar homes
As of Feb 2016 the Canadian Government has made changes affecting mortgage financing on homes above $500,000.
Effectively, a home up to $500,000 will require a down payment of 5% ( unchanged), anything over that will require a 10% down payment on the difference between the actual purchase price less $500.000.
Example: purchase price: $ 600,000
down payment: a) 5% of first $500.000 = $25,000
b) 10% of $100,000 = $10,000
for a total down payment of $35,000.
Properties of up to $1,000,000 will now require 20% down. There will no longer be Government backing on these properties. CMHC and Genworth financing will not be insuring loans on homes valued at over $1,000,000.
As the average price in the Toronto and Vancouver markets have risen significantly (the average priced home are now, $1M), coming up with the down payment and finding a lender to approve the mortgage has become challenging.
What we can do to help you finance a home of $1,000,000 Plus
- Arrange a mortgage at the lowest possible rate based on your credit worthiness. This means it can be our our best rates. If your credit is challenged we will arrange a shorter term mortgage with our alternative lenders giving you time to repair and rebuild your credit.
- Many of our mortgages do not have scaled lending limits. This means if you need 80% it will be the same rate for the full amount.
- Down payment. If you require assistance to raise additional down payment to meet the new down payment rules, we can arrange secondary financing.
- All our mortgages carry flexible re payment and maximum amortizations of 30 years ( uninsured only).