Jumbo Mortgages
Tailored Solutions for Mortgages Over $1 Million
As home prices rise in Canada, particularly in cities like Toronto, Vancouver, and Montreal, large mortgages have become increasingly common. Known as “jumbo mortgages,” these loans cater to homebuyers needing financing of over $1 million for high-value properties. At Better Mortgages, we specialize in connecting clients with lenders that offer competitive options for these larger loans, ensuring you secure the financing you need with terms that work for you.
What Is a Jumbo Mortgage?
Jumbo mortgages refer to loans exceeding $1 million. While not a formal product type, they are distinguished by their size and the specialized underwriting process involved. These mortgages often appeal to luxury homebuyers, multi-generational families, and investors purchasing high-value properties.
Why Jumbo Mortgages Stand Out
Jumbo mortgages come with unique opportunities for borrowers when placed with the right lender. Here’s what makes them different:
Flexible Down Payment Options
Many lenders apply a “sliding scale” for loans over $1 million, offering lower loan-to-value (LTV) ratios for amounts above that threshold. For example, on a $2 million property, a lender may offer 80% financing for the first $1 million and only 50% for the remainder, requiring a larger down payment. However, we work with lenders that waive this scale, allowing you to reduce your upfront costs and make larger purchases more attainable.
Exclusive Rate Discounts
Some banks and lenders incentivize high-value mortgages by offering special rate reductions, which can significantly lower monthly payments and
overall borrowing costs.
Flexible Debt Service Calculations
Lenders often consider more than just income when assessing jumbo mortgages. Assets, net worth, and other financial resources are factored in,
making approval easier for borrowers who may not fit traditional debt-to-income (DTI) ratios.
The Growing Demand for Jumbo Mortgages
Over the past two decades, rising home prices across Canada have led to increased demand for jumbo mortgages. In urban centers like Toronto and Vancouver, properties priced above $1 million are the norm rather than the exception. Other cities, such as Calgary, Ottawa, and Montreal, are also seeing steady growth in high-value home sales.
This trend has prompted lenders to offer more competitive options for jumbo mortgages,
making them an attractive choice for buyers of luxury properties and large homes.
Who Benefits from Jumbo Mortgages?
These mortgages cater to a variety of needs, including:
Luxury Homebuyers
Financing for high-value homes and estates.
Multi-Generational Families
Larger properties designed to
accommodate extended families.
Investors
High-value properties in prime markets
for rental or resale opportunities.
Why Better Mortgages Is Your Jumbo Mortgage Specialist
Navigating the complexities of jumbo mortgages requires expertise and a network of lenders willing to offer competitive options.
At Better Mortgages, we simplify the process:
Access to Specialized Lenders
We work with lenders who understand the nuances of high-value loans, ensuring you have access to products with competitive rates, waived sliding scales, and flexible terms.
Personalized Solutions
Our team evaluates your financial profile to match you with the right lender and loan structure, tailored to your unique goals and property needs.
Hassle-Free Process
From finding the right lender to managing the paperwork, we handle the heavy lifting so you can focus on
your new home.
Market Knowledge
With years of experience, we’re well-versed in the trends driving the luxury real estate market, helping you make informed decisions.
Why Use a Broker for a Jumbo Mortgage?
Negotiating a jumbo mortgage directly with a single lender can limit your options. As financial expert John D. Rockefeller said, “Don’t be afraid to give up the good to go for the great.” A broker brings the entire market to you, ensuring you don’t settle for a deal that’s merely “good enough.”
Take the First Step with Better Mortgages
Are you ready to finance your high-value home with a jumbo mortgage? At Better Mortgages, we combine expertise, industry connections, and a commitment to excellence to secure the best possible options for your needs.
Choose a Better Mortgages representative to work with or contact us today to schedule a consultation.
Let us help you turn your dream home into reality with a financing plan designed for success.