Understanding Bank Sliding Scales on Large Mortgages

We have a lot of people asking us , “Why won’t the bank lend me 80% of the value of my home”. The truth is, when it comes to lending on higher value homes, from a lender’s perspective, bigger isn’t always better. The bank considers that it is a higher risk to lend on these homes. This is where the “Sliding Scales” comes into play.

When homes valued at over 1.5 million. For example, the banks use a sliding scale to determine how much they are able to lend. Some backs, for example lend 80% of the first 1.2 million and 50% of the rest while other banks may consider lending 80% of the first 1.5 million.

As a mortgage broker, we have access to a variety of different lenders with different sliding scales.

Some with no sliding scales at all, so that we can find our clients the best solutions for their needs. By speaking with a mortgage broker, you have access to the best sliding scales and rates in the industry.

Give us a call at the office for more information!

Leo Marasovic