Want to buy a home but don't have cash for down payment?

While 100% Loan-to-Value mortgages may be long gone but there are still ways for you to purchase a home even if you don't have the cash for a down payment:
1. Borrowed down payment: “Flex Down” is a program that lenders offer that allows you to borrow your down payment (something that, otherwise, would not be allowed). Common sources for borrowed down payment for the Flex Down program are personal loans, lines of credit or credit cards. One thing to keep in mind is that the loan repayments must be taken into account when qualifying for your mortgage so it could affect the purchase price that you would qualify for.
2. Cash back: The Cash Back program offers you the ability to receive 5% of the purchase price back in cash from the lender that can be used for down payment. The interest rate on a Cash Back mortgage would be higher than if you had a down payment. This can be a great option for many people.
How do I qualify?
For either of these otions, you require an excellent credit rating and income stability.
Another consistent requirement for these programs is that you must be able to provide proof that you have assets (ie; cash, RRSPs or other investments) available to cover closing costs. If you'd like to learn more about your options, just let me know. Contact me at tgrozelle@regionalmortgage.ca or 403-392-5808.