A loan + mortgage mix that can get you into your dream home sooner
The path to home ownership can be a long one. Even with a 20% down payment, as a new professional or recent graduate, you may not yet have the income needed to qualify for a traditional mortgage.
With the Meridian Hybrid Mortgage, you won’t have to put your dreams of home ownership on hold.
On the larger loan component (60%), you’ll pay interest only, which means a more affordable monthly payment and breathing room for other expenses and savings. Most importantly, having lower monthly payments brings down your Gross Debt Service (GDS) ratio and your Total Debt Service (TDS) ratio – factors lenders look at when evaluating your application and determining whether you have enough income to qualify for the mortgage. Having lower GDS and TDS ratios means you may qualify for a larger mortgage and increase your purchasing power to buy your dream home today.
On the conventional mortgage component (20%), you’ll pay principal and interest, which means reducing your principal on the higher interest-rate portion first.
The Hybrid Mortgage is a short-term solution within a long-term plan. As your income increases over time, your mortgage advisor will work with you to move from the Hybrid to a standard mortgage.