Jumbo Mortgages
Welcome to our guide on jumbo mortgages, tailored for discerning homebuyers in Canada seeking large mortgage loans. As the #1 Mortgage Broker in Canada, Dave and his team specialize in jumbo mortgages and are dedicated to helping you secure the best possible financing for your home.
What are Jumbo Mortgages?
In Canada, jumbo mortgages refer to mortgages exceeding $1 million, typically in the past catering to high-net-worth individuals and luxury property buyers.
Over the years, some banks have an increased appetite for jumbo mortgages, offering unique benefits and incentives tailored to high-value loans:
Waived Sliding-Scale Restrictions:
Many banks and mortgage lenders have whatās called a āsliding-scaleā restriction that applies to mortgages over $1M. On a property valued at $2M, most will lend 80% of the first $1M, but then only 50% of the rest, meaning borrowers will have to come up with a lot more than just the traditional 20% down payment for a Conventional Mortgage. Dave and his team look to place their jumbo mortgages with banks and lenders that allow for the removal of any sliding-scale. This means less down payment required and clients being able to move into their dream home easier.
Extra Interest Rate Discounts:
A limited number of banks and lenders will offer additional interest rate discounts, specifically for jumbo mortgages. This results in lower monthly payments and overall borrowing costs.
Extended Debt Service Ratios:
Banks offering jumbo mortgages often consider other financial assets and net worth when evaluating debt service ratios, allowing for more favorable terms and easier approvals for higher loan amounts.
The Rise of Jumbo Mortgages in Canada
Over the past two decades, Canadian home prices have experienced significant growth, particularly in urban centers and desirable neighborhoods. The average starting mortgage amount on a home has increased dramatically over the last 20 years, driving the demand for banks and lenders that will support jumbo mortgages.
Meeting the Needs of Modern Homebuyers
With the emergence of new housing trends, such as multi-generational living and shared ownership, the need for larger mortgages has grown. Jumbo mortgages provide the flexibility and financing options needed to accommodate these evolving lifestyle choices, whether it's purchasing a spacious estate for a growing family or investing in a luxury property for multi-family occupancy.
Why Choose a MortgageĀ Broker for JumboĀ Mortgages?
By working with a mortgage broker specializing in jumbo mortgages, you avoid wasting time applying for mortgages at banks that may not offer favorable jumbo mortgage programs. Our extensive network of lenders includes banks with specialized jumbo mortgage offerings, ensuring you have access to the best possible financing options for your luxury home.
Get Started Today
Ready to unlock the door to your dream home? Contact us today to schedule a consultation or Apply Now and explore your options for jumbo mortgages. Let us help you turn your homeownership aspirations into reality.
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