For secondary homes or investment properties, only existing properties with a maximum of two units are eligible for refinancing.
Owner-occupied properties with a maximum of four units are eligible, provided at least one unit is used as the primary residence, and the property is an existing one (not new construction).
The loan-to-value (LTV) ratio is a measure of the relationship between the principal balance of a mortgage and the property value.
For example, if a property is appraised at $500,000 and the outstanding mortgage balance is $400,000, the LTV ratio would be 80% ($400,000 divided by $500,000).
A higher LTV ratio indicates a higher risk for the lender, as it means that the borrower has less equity in the property and is more likely to default on the loan.
Lenders require a valid and acceptable purpose, such as:
This program allows for extended amortization of up to 30 years and offers a maximum of two cash advances. However, mortgages set for default management purposes are not eligible for this program.