The changing lifestyles of Canadians are affecting how and where we live. Fortunately, mortgage lenders and insurers have created mortgages that meet these needs.
The lowest possible down-payment is 5% of the purchase price. Down-payments can come from a number of sources and can include savings, Registered Retirement Savings Plan withdrawals, borrowed funds, gifts, sweat equity and cash-back mortgages from the lender.
Different lenders have different guidelines, and a mortgage broker can help you choose the right lender.
The source and amount of down-payment affect the minimum credit score the mortgage lender will allow. If the mortgage is high-ratio, the minimum credit score is 620. If you’re using nontraditional sources of down-payment, the minimum credit score is 650.
The property requirements for a second family home are that it be located in Canada and be suitable and available for year-round living. The last requirement is that when the mortgage closes, the property must be lived in by you or a relative on a rent-free basis.