The Flex Down program exists to help borrowers who don’t have enough saved funds for a down payment but who do have strong income and credit. Instead of requiring the entire down payment to come from savings, gifts, or traditional sources, the Flex Down option lets the borrower borrow the down payment funds (e.g., via a personal loan, line of credit, or credit card advance).

• Expand access to homeownership: It allows qualified borrowers to purchase sooner without waiting to save the full down payment.

• Increase flexibility in down payment sources: Recognizes that not all buyers accumulate savings in cash; some have access to credit.

• Support affordability in high-cost markets: In places where saving 5–20% down takes years, this gives motivated buyers an earlier entry point.

• Balance lender/insurer risk with borrower opportunity: While it increases borrower leverage, strict conditions (credit score, debt service ratios, stress test) protect against overextension.

Use My Flex Down Calculator to discover how much you can borrow to make homeownership accessible for you!

How to Make Flex Down Work for You

Clients can get frustrated when they hit that “Max Flex Down = 0” wall in the calculator.

The key point is: Flex Down only works when there’s room under the 44% TDS cap after stress-tested housing costs. If there isn’t room, the solution isn’t to “force it through,” but to adjust the variables in the borrower’s favour. Here’s how:

1. Target a Lower Purchase Price

• A smaller mortgage means lower P&I payments, lower property taxes, and often lower heat costs.

• This directly reduces the housing cost portion of TDS, freeing up room for Flex Down debt.

2. Extend the Amortization

• Moving from 25 years to 30 years (if insurer/lender allows) reduces the monthly mortgage payment.

• This can free up several hundred dollars a month in ratio space.

• Note: must be approved under insurer guidelines (often only for 20%+ down or special programs).

3. Pay Down Other Debts First

• Even a modest $150–$200/month car loan or credit card minimum can be the difference between qualifying and not.

• Eliminating or consolidating other debts improves TDS and leaves more room for Flex Down.

4. Increase Income (Documented)

• Adding a co-borrower, spouse, or partner’s income.

• Using allowable bonus, commission, or overtime income (with proof of 2-year average if needed).

• This raises the gross income figure, raising the 44% TDS cap.

5. Adjust the Down Payment Source

• Instead of borrowing the full shortfall, combine part savings + part gift + part Flex Down.

• The less you borrow as Flex Down, the smaller the payment factor added to TDS.

6. Choose a Lower Flex Down Factor Lender

• Default assumption is 3% of balance (conservative).

• Some lenders may accept a lower payment factor for unsecured lines of credit (e.g. 1% interest-only).

• That reduces the TDS impact of the borrowed down payment.

7. Consider Property Type

• Condos with high condo fees can blow up the ratios.

• A freehold home (with no condo fees) may leave more room for Flex Down, even if the purchase price is similar.

Bottom Line

To “make Flex Down work,” borrowers either need to lower their costs (price, amortization, debts, condo fees) or raise their TDS capacity (income, co-borrower, gift funds).