Down Payment

Down payment is the "basis", the initial investment you make when originating a mortgage loan. It is the part of the value of the property that you are ready to pay Platinum Lending LTD at the start ("down" means "at once"). Usually you pay it in a combination with closing costs. People typically pay from 5 to 25% of the total value of the home.

Depending on the amount of down payment you are able to afford, Platinum Lending LTD can offer you different types of mortgage. It can be either a conventional mortgage, or an insured, high-ratio mortgage.

Conventional mortgage is determined for the borrowers, ready to pay at least 25 per cent of the purchase price.

High-ratio mortgage is chosen in the event that the borrower’s down payment is less than 25 per cent of the purchase price. In this case, the mortgage must be insured by certain mortgage insurance companies and the insurance fee will be added to your initial investment.