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A sliding scale in mortgage lending describes a rule, fee, or requirement that changes gradually across a range of values — such as loan-to-value or purchase price — rather than switching abruptly at a single cutoff point.
Minimum down payment is a sliding scale by price band rather than one flat percentage: 5% on the first $500,000, 10% on the portion from $500,000 to $1.5 million, and 20% at $1.5 million and above.
Default-insurance premiums move on a similar sliding scale tied to loan-to-value, running roughly 0.60% to 4.00% of the loan amount and rising as LTV rises, both calculated against the property’s lending value rather than a single flat rate applied at every LTV.
Down payment is tiered: Canada’s minimum down payment rises in bands — 5% on the first $500,000, 10% from $500,000 to $1.5 million, and 20% at $1.5 million and above — rather than a single flat percentage.
Insurance premiums scale with LTV: default-insurance premiums run roughly 0.60% to 4.00% of the loan amount, increasing as LTV increases, rather than one flat rate.
Applied against lending value: both the down payment and LTV-based pricing scales are calculated against the lending value of the property, not necessarily the price a buyer offers.
Some lender fees also scale: certain lender and broker compensation structures likewise move gradually with loan size or LTV rather than being fixed — specifics vary by lender.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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