How does the 5% Down Payment Program Work?
Under the 5% Down Payment Program, the minimum down payment of 5% of the purchase
price or appraised value, whichever is less.
The down payment must be from customer’s own resources
or an outright financial gift from immediate relatives.
If the minimum equity requirement is being met by way of a financial
gift, the funds must be in the possession of the borrower at the time of application.
Borrowers are also required to demonstrate at time of application
the ability to cover a closing cost equal to at least 1.5% of the purchase price.
Maximum purchase price can range from $125,000 to $300,000.
Your Mortgage Consultant will confirm the maximum in your market area.
Maximum GDSR= 32% (i.e. Principal + Interest + Property Taxes
+ Heating Costs must not exceed 32% of Gross Income).
Maximum TDSR= 40% (i.e. Principal + Interest + Property Taxes
+ Heating Costs + Monthly Obligations including Credit Cards & Loans must
not exceed 40% of Gross Income).
Minimum loan term for CMHC is 6 months with loan qualification
based on the current 5 year rate.
GENCOR (GE Capital) currently has no minimum term requirement.
The mortgage loan insurance premium is 3.75% of the mortgage
amount. (Premium can be added to the mortgage or paid separately).
Credit history must be in good standing.
