If you are looking to submit a multi-component mortgage to one of the lenders, such as Scotiabank or MCAP, that offer them, both lenders request that when you submit a deal, you submit one 1st Mortgage at the global limit, then in the lender notes you describe the breakdown of the global limit. They request this because when they receive submissions with 1st and 2nd mortgage components, it does not populate their systems correctly from any submission platforms.
Example of how the packaging notes would read:
Submitting Scotia Step Mortgage with a global limit of $500,000
1st portion - $400K 5-year fixed term
LOC Portion - $100K Prime plus 0.50% (explain how much advanced)
You can watch this video to learn more.
Multi-component cost of borrowing documentation
Click below to watch a video on creating the cost of borrowing documents for multi-component mortgages.
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