 |
Purchasing without a Down Payment |
|
 |
|
BC Mortgage Broker
Direct Line: (604) 506-0397 Fax: (604) 628-3798 Toll free (Canada) : 1-800-504-5886 email: johnso@bcmortgage.ca
|
|
|
Apply using Invis' secure 128-bit connection: Areas served: All of British Columbia (BC) including Vancouver, Richmond, Burnaby, Surrey, Abbotsford, Coquitlam, Saanich, Whistler, Squamish, Kelowna, Kamloops, Victoria Prince George, Nanaimo, Maple Ridge, Chilliwack, New Westminster, Port Coquitlam, North Vancouver, West Vancouver, Vernon, Mission, Penticton, etc.,
Mortgage services:
|
On October 15, 2008, the Federal Government's new lending rules came into effect which phased out zero down payment mortgages. The minimum down payment required is 5% of the purchase price. For those who have not saved the 5%, you have two other option: (1) Borrow the downpayment; (2) Obtain a cashback for the downpayment.
Borrowed downpayment
You can borrow the down payment. You may already have an existing line of credit or some other source of short term financing.
The requirements of the programme are as follows:
-
Good credit
-
Stable income
-
Borrowers must intend to live in the property.
Borrowing the
downpayment makes sense if you have a way to pay this loan
of in a short while. Often, a personal loan can be
significantly more expensive compared to a mortgage
interest.
5% Cash Back
Mortgages (available
through BC Mortgage Brokers)
Alternatively, you can obtain a cashback for the downpayment.
Under the program, the lender provides the 5% down
payment needed for the purchase. The cashback goes
towards the downpayment on the home. You don't pay
interest on the cashback. In order for the lender to
recover the cost of the cashback, the interest rate on the
mortgage is bumped up.
As with the borrowed downpayment, you will need to have good credit, stable income and you must intend to live in the property.
BC mortgage brokers should be able to advise you as to your options.
Benefits of Borrowed or Cashback Mortgages
Borrowed / Cashback mortgages allow a borrower who may be currently renting to get into the market when otherwise they would have to wait several years to accumulate the money for a down payment. You can therefore achieve your dream now rather than wait a few years.Secondly, this approach may allow the borrower to pay down other high interest debts. Instead of using your down payment for your purchase, it may be wise to apply the down payment against your credit card bills which are costing you more.
Third, you may not have the money to purchase the furniture you need for your home. Most people use their credit cards or line of credit for this purpose. But, it is more expensive. Talk to your BC Mortgage Broker to obtain the right no down payment mortgage.
"My job is done when you know your options"
 |
 |
|
 |
 |