Skip to main content
MBS-Home
  • About Us
    About Us
  • Mortgages
    Mortgages
  • Resources
    Resources
  • Our Rates
    Our Rates
  • What's New
    What's New
  • Contact
    Contact
    About Us
    Mortgages
    Resources
    Our Rates
    What's New
    Contact
    About Us
    • Our Story
    • Lending Areas
    Mortgages
    • Commercial
    • Residential
    Resources
    • Forms & Appraiser's List
    • Alternative Mortgage Program
    • FAQs
    Our Rates
    • Everyday Rates
    What's New
    • News & Updates
    Contact
    • Get In Touch

    SUCCESS STORIES

    Blanket Mortgage

    Offering a blanket mortgage helped this couple meet the LTV requirement on an investment property.

    The challenge

    While Priya and Ray were excited to purchase a rental property in Toronto for $825,000, they were facing several challenges. They are rate-sensitive, they had 25% down and they also needed a lender who could assist by using market rent in servicing.  

    Their backstory

    Both have verifiable income: Priya has been in commission sales for more than five years, while Ray is full-time salaried. With beacon scores of 690 and 660, respectively, they also have excellent equity in their primary home, which is valued at $1.5 million and has a first mortgage of $425,000. 

    Our view

    We saw two applicants investing in real estate as a plan for their future. We can assist with this scenario, as our rates for rentals, at contract + 0.25%, are very competitive, and we can consider up to 100% rent or market rent to assist with servicing requirements. To meet our 65% LTV requirement on rentals, we considered the equity of their primary residence, and in the end, offered a blanket mortgage solution.  

    Approval details

    • $618,750 mortgage (75% of the purchase price)
    • Blanket mortgage to be registered with primary home
    • Amortization: 25 years
    • Income: 
      • Two-year T4A average and letter of employment for Priya
      • Salary letter and paystub for Ray
    • Appraiser to support market rent
    • Down payment from savings

    ​TIPS

    Provide full details on any additional properties and outstanding mortgages. We need to ensure that any additional property that would be used is either free and clear or that any registered first mortgage is not shown as a collateral charge.

    DID YOU KNOW?

    To assist with the purchase of a rental property, a secondary home or a cottage, using the combined equity from a primary residence may assist in a higher LTV offering at the time of our review.

    Click here to read other client stories. 

    • Line icon for telephone calling.
    • Line icon for email.
    • Twitter logo.
    • Logo for Linkedin.

      PRIVACY & LEGAL            ACCESSIBILITY