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How Can I Borrow More Money?
Gimme The Money 
If your down payment is less than 25%, a regular mortgage won’t cover your purchase. Your options include:
1. A high-ratio mortgage
Lets you borrow up to 95% of the house price.
You’ll have to buy mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC) to cover this loan. Why? Since you’ve borrowed so much, the bank believes there’s a higher risk you might not pay it back.
You can pay for your insurance in a single lump sum when you buy your new home. Or, you can add it to your mortgage and include it in your monthly payments. If you choose monthly payments, you will pay interest on what you owe. Over the years, that can really add up.
Example: If you put 20% down on a $200,000 home, you would pay $1,600 (1%) to insure your mortgage with CMHC. If you put down 10% on the same home, you would have to pay $3,600 (2%). If your down payment is just 5%, you would pay $5,225 (2.75%) for CMHC insurance.
2. Second mortgage
First you borrow as much as you can as a regular mortgage. This is also called a first mortgage.
You get a second mortgage for the rest. Often you will get this loan from a different lender who is willing to take on the extra risk. After all, the lender may not get their money back, if you have to sell your home. That’s because the bank that holds your first mortgage is first in line. Also, you will usually pay a higher rate of interest. Higher interest makes it worth the risk for the lender.
Check out the Investor Education Fund for more information like this.
[...] A high-ratio mortgage, or A second mortgage. Learn more now: How can I borrow more? [...]