Many first time Buyers struggle to find the down payment for their first home!
What are your options? Where does the down payment come from?
Before 15 Oct 2008 there was the zero down payment mortgage & 40 year pay back option for 1st Time Buyer. This program was removed by the Canadian Federal Government and has been replaced with 5% down payment and maximum pay back period of 35 years. Option 5 below may be a useful way for some 1st time buyers to get into the housing market (free down payment!).
The options in todays market for 1st Time Buyers on how to put together their minimum down payment are:
1) 5% down payment from your own savings. Don’t forget you can use your RRSP savings.
2) 5% down payment borrowed from LOC, Credit Card, or Loans. As long as you can debt service it, you're good to go.
3) 5% down payment Gifted from a family member or employer.
4) Family member to be added to property Title and support the 5% down payment.
5) Free Down Payment Mortgages do exist for the 1st Time Buyer. Certain Canadian Banks and Lenders pay the 5% minimum down payment on your behalf when you take out an affordable insured 5 or 7 year fixed rate mortgage. This is similar to the “old zero” down payment that was offered before 15 October/08, but with restrictions on credit history & income qualification.
Please call Geoff Antrum at 430 608 5682, for more information on down payments, mortgages & questions about buying a home and viewing homes in Calgary.