Hi Ratio Mortgage Requirements


Number of Units

1-4 units, one of which must be occupied by the owner

Maximum Loan-To-Value Ratio
  • 1 unit: 95%
  • 2 units (eg: duplex): 92.50%
  • 3 or 4 units: 90%

Qualifying Interest Rate
The interest rate used to determine borrower eligibility is determined as follows:
  • Loan term less than 3 years---the greater of the lender's 3 year posted rate or the contract rate (or VRM cap).
  • Loan term 3 years or more---the contract interest rate (or VRM cap).
  • Standard Variable Rate Mortgage (VRM), regardless of loan term: the lender's 3 year posted rate.

Maximum Amortization Period

Maximum amortization period of 25 years.

Minimum Loan Term

6 Months

Hi-Ratio Application Fee


Insurance Premiums
Loan To Value ratio
  • Up to and incl. 65%
  • Up to and incl. 75%
  • Up to and incl. 80%
  • Up to and incl. 85%
  • Up to and incl. 90%
  • Up to and incl. 95%

  • Premium Amount
  • 0.50%
  • 0.65%
  • 1.00%
  • 1.75%
  • 2.00%
  • 3.25%

  • *Standard Variable Rate Mortgages are subject to a 0.25% surcharge

    Minimum Equity

    • Minimum equity of 5% from the borrower's own resources is required.
    • Gift down payments from an immediate relative are acceptable and need to be confirmed in a letter from the donor. Gift money needs to be in the borrower's possession 15 days prior to the closing date.
    • Lender needs to verify that the borrower's ability to cover closing costs of at least 1.5% of the purchase price. If the closing costs are to be borrowed, the loan repayment is to be included in the Total Debt Service (TDSR) calculation.

    Debt Servicing Ratios

    • Gross Debt Service (GDS) ratio: The borrower can commit up to 32% of the gross household income toward the payment of principal + interest + property taxes + heat. For condominiums, this formula includes 50% of condominium fees.
    • Total Debt Service (TDS) ratio: The borrower can commit up to 40% of gross household income toward housing obligations and other debts.
    • When the property has one to three rental units in addition to the owner-occupied unit, TDS formula is:
    (principal+interest+property taxes+heat + payments on all other debts) X 100
    Divided By:

    gross household income + up to 50% of confirmed gross rental income
    • For GDS and TDS calculations, principal and interest payments are calculated on total insured loan amount, including mortgage loan insurance premium where applicable.

    Maximum House Price

    Maximum house prices apply to LTV's that are greater than 90%

    Previous Bankrupt

    • Must be discharged a minimum of 2 years with re-established credit. A mortgage broker can assist you in re-establishing your credit.

    ©2006 Real Mortgage Associates | 578 Upper James Street  | Hamilton, Ontario | L9C 2Y6
    Licence # 10464 | 1 877 677 7778