Client Story Thursday

Posted on 11 August, 2016

As told by Joy Lajeunesse, Broker at Innovative Mortgage Solutions.

Natural disasters can impact your life in profound ways. In this particular case, a recent client of mine had lost not one, but two of his homes due to factors beyond his control. He was looking for mortgage financing on what would technically be considered his third principal residence, however he was unsure about potential issues with CMHC legislation and his down payment options.

Under current CMHC rules, you are allowed to have one primary residence and, in some cases, a second principal residence if you want to pay the minimum 5 percent down. Even though his first two homes were deemed uninhabitable due to natural causes, he was not sure if he would qualify for 5 percent down payment and would instead have to pay 20 percent down on his third property.

Obviously, losing two homes can put intense financial strain on anybody, and this client simply did not have the funds available to pay 20 percent down. It was time to think about alternative solutions that would get my client into his new home without having to pay that 20 percent up front. 

After putting some thought into his options, I was able to re-work my client’s debt ratio which allowed CMHC to examine the details of his situation. After I helped him complete an early mortgage renewal on one of his previous properties, CMHC was able to approve a 5 percent down payment on the new property.

Even though most of our clients have not had the misfortune of losing two of their homes, every mortgage situation is unique. We love thinking outside the box to find the best financing solutions for our clients. Contact our office today to see how we can help you!


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