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Flex Down Mortgage

Rob Clarke

Northern BC Investor
Registered
Joined
Oct 25, 2015
Messages
17
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|
Registered
Joined
Feb 7, 2017
Messages
122
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


Sent from my iPhone using myREINspace
 

angelapeng

0
Registered
Joined
Aug 19, 2011
Messages
183
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

0
REIN Member
Joined
Dec 14, 2013
Messages
980
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?
 
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