Flex Down Mortgage

Rob Clarke

Northern BC Investor
REIN Member
Oct 25, 2015
13
9
3
Prince George
#1
Does anyone have experience with "Flex Down" financing on an investment property? 50% interest only, 50% amortized. Obviously the pro would be much higher cash flow and con is mortgage pay down. Does anyone have any experience / insight? Thanks in advance.
 

Caleb West

Multi Family Commercial|Collaborative Office|
REIN Member
Feb 7, 2017
127
57
28
#2
Hey rob

It’ll be harder to get a great rate from a big bank on this, we had lots of push back. A readvancable Mortgage is a great way to go as well imho


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Likes: ThomasBeyer

angelapeng

Inspired Forum Member
Registered
Aug 19, 2011
175
18
18
Vancouver
#3
I had talked to one broker one month ago, he said that Manulife has the program for that. The interest rate quoted about 4.5-5% for the interest only portion of mortgage. The qualification is easier for those who are self-employed.
 

Matt Crowley

Senior Forum Member
Registered
Dec 14, 2013
841
340
63
Calgary
#4
Readvancable is a better option.

Are you thinking the flex-down could work for a value-add with ~60% occupancy? Why not go IO and require less cash up front to fund the cap ex?