2% Central Brokerage

Refinancing Requirements

1. Suitable Asset

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).

2. Loan-To-Value (LTV)

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.

3. Acceptable Purpose

Lenders require a valid and acceptable purpose, such as:
debt consolidation
asset enhancement
combining mortgages
investment purchases

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.

4. Amortizations
This program offers the flexibility of extended amortizations of up to 30 years for currently uninsured conventional mortgages, subject to the discretion of the lender.