Flex Down Mortgage

[Rob Clarke]

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]

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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[angelapeng]

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]

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?