Private mortgage lending in Richmond Hill

The consequences diverge sharply. Below the ceiling, the tiered minimum down payment applies — 5% on the first $500,000 plus 10% on the balance — insurance is available, the premium is financed onto the loan, and a first-time buyer or a new-construction purchaser can use a 30-year amortization to lower the payment the stress test is applied against. Above it, insurance cannot be purchased at any price: 20% down is the legal minimum, roughly $313,827 on a $1,569,133 home, the amortization options narrow, and the file is underwritten conventionally, where the appraisal and the debt-service ratios both carry more weight. Richmond Hill's buyer mix makes this especially live, because so many local purchases are move-up files funded partly by equity from an existing property. Whether that equity arrives before or after closing — a sale that completes first, a bridge loan that spans the gap, or a refinance of the departing home — determines whether the 20% is actually in hand on the day the lender needs it.

At Richmond Hill price bands, that difference is one of the larger single savings available on the closing statement, though the provincial tax alone remains substantial and the first-time-buyer rebate of up to $4,000 covers only a small share of it at these values. The sharper local problem is sequencing. A move-up buyer who must sell to fund the purchase faces a timing gap that lenders solve in specific ways: bridge financing covers the days or weeks between the purchase closing and the sale closing, but it generally requires a firm sale — a conditional one usually will not do — and it is short-term, interest-bearing money with its own setup cost. The alternative, closing the purchase without a sale, means qualifying while carrying both properties, which the debt-service ratios test at the stress-test rate on both mortgages at once. Neither is wrong; they are different risks. We map the two closing dates and the two carrying costs before the offer, so the choice is made deliberately.

A family buys up within Richmond Hill, funding the down payment from the sale of their existing home. The purchase closes on a Thursday; the sale closes on the following Monday. For those four days the down payment does not exist in cash, and the lender needs it on the purchase closing date. Bridge financing exists precisely for this, but it turns on the sale being firm — and if the sale is still conditional on the buyer's own financing, most lenders will not bridge against it. The alternatives are all worse and all avoidable: renegotiating closing dates late, borrowing expensively at short notice, or discovering that carrying both mortgages simultaneously fails the debt-service ratios at the stress-test rate. Because the detached price band here also frequently sits above the $1.5-million insurability ceiling, the amount that has to be bridged is often a full 20% rather than a tiered minimum, which makes the sequencing tighter still. The work is calendar work, done early. Every real file is assessed on its own facts.