From Right At Home Financial

Potential purchasers who live with their parents or rent can get into the real estate market even if they haven't saved a down payment.

All they need is:

 
reasonably good credit (beacon score of 680)
a little better than average income (35% GDSR & TDSR)
and $5,000 for the real estate deposit (which can also be used to pay their lawyer and the land transfer tax on closing with some money left over for moving costs)

 
Here's how it works:

 
the bank (the lender is a big bank) provides the 5% down payment on closing.

the bank then charges you the 5 year fixed "posted rate" instead of the 5 year discounted rate which pays back the 5% down payment over the  5 years of the term.  At the end of the term, you are equal to a purchaser who had the 5% down payment initially and can negotiate the best rates available.
 

Example
Purchase price $250,000
Down Payment $ 12,500 (provided by the bank on closing)
Mortgage         $237,500 plus $7,719 CMHC fee added to the mortgage = $245,219 mortgage amount
Payments of $1,258.74 monthly (5.19% 5 year fixed rate & 35 year repayment) with the usual pre-payment and payment options)

$1,008.49 monthly mortgage payment at 3.49% 5 year fixed rate If you have your own 5% down payment 
$1,258.74 monthly mortgage payment at 5.19% 5 year fixed rate if you are given the 5% down payment by the bank
$  250.25  additional monthly payment over 5 years to repay the money the bank provided.

A total family annual income of about $50,000 would be required to qualify in this example if there are no additional monthly payments.
A $60,000 total family income would be required if card, loan or line of credit payments total $300 per month. 

We can help.  All we need is the Mortgage Application and Privacy Notice.
 
Click here to download Ray Eady's application

Click here to download Rich Eady's application

Making You Feel Right At Home!

MICHELLE LA

SALES REPRESENTATIVE

direct: (416) 895-6339

office: (416) 391-3232

mhelenla@gmail.com

* The information and opinions contained in this document are obtained from various sources and believed to be reliable, but their accuracy cannot be guaranteed. The publisher assumes no responsibility for errors and omissions, or for damages resulting from using the published information and opinions. This document is provided with the understanding that it does not render legal, accounting, or other professional advice. Whole or partial reproduction is forbidden without the written permission of the publisher.

Not intended to solicit properties currently listed for sale