February 23, 20263 min read
For many Canadian homebuyers, this question comes up before they are ready to make an offer. Borrowed down payments can be permitted in some mortgage programs, but they change the risk and affordability calculation because the new loan creates another monthly obligation.
What lenders actually look at
Here is what matters most:
- The lender must know that the down-payment funds are borrowed.
- Payments on a line of credit or personal loan are included when calculating total debt service.
- Mortgage insurer rules can restrict or price non-traditional down-payment sources differently.
- Borrowing the full available amount can leave a homeowner with little financial cushion after closing.
If you need borrowed funds, compare the resulting mortgage qualification and total monthly debt load before committing.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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