SASCU Borrowed Down Payment Program

SASCU's Borrowed Down Payment Program aligns with the recent enhancements to CMHC’s Non-Traditional Down Payment Policy, allowing eligible borrowers to secure a personal loan to assist with their down payment on a home purchase.

Program Eligibility

• Loan-to-Value (LTV) Ratio: Available for insured mortgages with an LTV between 90.01% and 95%.
• Minimum Borrower Contribution: Borrowers must contribute at least 2.5% of the purchase price from their own savings.
• Credit Requirements: Strong credit history is required, including a minimum credit score and evidence of responsible credit management.
• Eligible Property Types:
  • Owner-occupied primary residences only (investment properties are not eligible).
  • Maximum of two units (e.g., duplex).
• Ineligible Borrowers: Non-permanent residents do not qualify.
• Ineligible Properties: Chattel loans (e.g., manufactured homes on leased land, construction equipment) are not eligible.

Program Details

• Borrowed Down Payment Limit: Borrowers may finance up to 50% of the required down payment.
  • Example: For a $750,000 home purchase, the minimum down payment is $50,000. Under this program, borrowers can borrow up to $25,000 for their down payment.
• Maximum Purchase Price: The home’s purchase price cannot exceed $1,000,000.
• Loan Interest Rate: The borrowed down payment loan is set at SASCU's insured mortgage posted rate + 3% premium.
• Repayment Terms: Maximum amortization of 15 years.

Mortgage Insurance Premium

• The mortgage insurance premium for borrowers using a non-traditional down payment will be 4.50%, in line with CMHC guidelines.

Important Notes

• Borrowers must meet all CMHC requirements for non-traditional down payments.
• This program is subject to regulatory updates and internal policy changes.
• SASCU reserves the right to modify or discontinue the program without prior notice.

For more information, speak to a SASCU representative today.