Borrow Your Down Payment
Purchasing a new home? Now you can borrow your down payment!
So your having a tough time saving for a down payment? This recent announcement just might make it possible for you to get the home you have always wanted.
Canada Mortgage and Housing (CMHC) has just announced that home buyers will now have a greater choice in what they can use for a down payment when purchasing a home.
Previously borrowers were required to have a minimum of 5% down payment from their own resources to purchase a home.
CMHC has now expanded the eligible down payment sources to include lender incentives and borrowed funds. Essentially you can now buy a house with no money down..
Under this announcement lenders will be able to offer Canadians a variety of mortgage products including mortgages with terms as low as six months and fixed, adjustable and capped interest rates.
Known as "Flex Down", the plan is available to eligible borrowers only. The down payment must be from a source that is arm's length to and not tied to the purchase or sale of the property, either directly or indirectly.
