Flex Down payment VS Traditional Down Payment

Flex Down" actually has been around for some time. Flex down (CMHC program) is available for an "employed individual" who receives salary, or for "self employed" only if he/she claims sufficient income to debt service.

Flex down payment could include the following:

• personal line of credit (LOC)
• credit card transfer
• borrowed funds.

Whereas, a traditional down payment can be from the following:

• cash
• gift from relatives
• RRSP withdrawal
  
• funds borrowed against proven assets
• rent-to-own payments
• goverment home owner grants
• procceds from sale of other property

Flex down mortgage program, while allowing flexibility on source of down payment, it does have higher insurance premium for the same amount of loan and loan to value compared to traditional down payment program.