If you buy a property of 1-4 units, with at least one owner-occupied unit, you could get a Sunlite Mortgage second mortgage on your purchase. The combined loan-to-value can be up to 95% of the property value. A traditional lender must provide both first and second mortgages, with the first mortgage insured by a mortgage default insurer.
The first mortgage must be insured under any of the following scenarios:
- Purchase / Purchase Plus applications
- Combined Loan to Value (CLTV) is > 90%
- Business for Self (Alt. A) Program applications
If the second mortgage is being used for a refinance, the first mortgage must be:
- Current at time of second mortgage application with stable repayment
- Second mortgage agreement must contain cross-default clause (default on the first mortgage constitutes default on the second mortgage).
- In the event of a re-advanceable first mortgage, no amount may be re-advanced until after the second mortgage is paid out.
- If CLTV > 90%, the first mortgage must be held by the same Lender.
