MORTGAGES OVER $1,000,000.00
As property prices continue to rise especially in the Toronto area, mortgages over $1,000,000.00 and upwards are becoming very common. Banks and other financial lenders have put more restrictions on larger loans. The higher the mortgage loan the more risk . A typical conventional mortgage requires 20% down payment as a minimum and the majority of borrowers believe that if they meet the income guidelines and have 20% down then the approval is automatic. This is not the case. A majority of lenders including banks will allow borrowing of 80% of the property value on the first $1,000,000.00 so that would be $800,000.00 and only 50% of the remainder, so on a $2,000,000.00 purchase that would be a maximum mortgage of $1,300,000.00 so a borrower would need $700,000.00 down payment or 35%. Each scenario can be different and based on the net worth of the borrower and other debts held exceptions can be made from lender to lender. We understand each lender’s policies on loans over $1,000,000.00 and therefore know where a mortgage will fit and how to get the mortgage approved therefore get you the mortgage you deserve.