High ratio mortgages are an option for individuals and corporations looking to purchase a property with a down payment of less than 20% of the purchase price. These types of mortgages are often attractive to first-time homebuyers or businesses that are looking to invest in property without tying up too much capital in a down payment. In this article, we will explore the benefits of high ratio mortgages for individuals and corporations.

For Individuals:

1. Lower down payment: The most obvious benefit of a high ratio mortgage is the lower down payment required. With a conventional mortgage, a down payment of 20% or more is typically required. This can be a significant barrier to homeownership for many people, especially in expensive real estate markets. A high ratio mortgage allows borrowers to purchase a home with a smaller down payment, making it more accessible to a wider range of individuals.

2. Affordability: By lowering the down payment, high ratio mortgages can also make monthly mortgage payments more affordable. This can be especially helpful for first-time homebuyers who are just starting out in their careers and may have lower incomes. By spreading the cost of the home purchase over a longer period, borrowers can make their monthly payments more manageable.

3. Investment opportunities: For individuals who are interested in real estate investing, high ratio mortgages can also be a useful tool. By using a high ratio mortgage to purchase an investment property, investors can leverage their investment and potentially earn a higher return on their money.

For Corporations:

1. Preserving capital: High ratio mortgages can be a useful tool for corporations that want to invest in real estate without tying up too much capital in a down payment. By using a high ratio mortgage, corporations can free up capital to invest in other areas of their business, such as research and development, marketing, or hiring new employees.

2. Tax benefits: In some cases, the interest paid on a high ratio mortgage can be tax-deductible for corporations. This can be an attractive benefit for businesses that are looking to maximize their tax savings.

3. Building equity: By using a high ratio mortgage to purchase property, corporations can begin building equity in the property immediately. This can be a useful tool for long-term financial planning and can help businesses build a strong foundation for future growth and success.

In conclusion, high ratio mortgages can be an attractive option for both individuals and corporations looking to invest in real estate. By lowering the barrier to entry and preserving capital, these types of mortgages can help borrowers achieve their financial goals while also providing a solid foundation for future growth and success.