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 what’s called a ‘sliding-scale’ 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.