For those who don’t know there are other options to securing your down payment to buy your first home. Sure you can pinch pennies and save your hard earned cash. You can also receive it as a gift from your blood relatives ( mother, father, sister, brother) or incase you don’t know you can borrow it.
Yes you can borrow your down payment. This can come from arms length sources such as your line of credit, a personal bank loan, or lender credit. The loan payments must fit into existing debt service calculations, meaning that your GDS/TDS must not exceed 39/44 which are the existing limits.
You must have strong credit ( above 700 beacon score) and have the necessary 1.5% deed transfer tax from their own resources. This can be used to purchase a single family home or a duplex. However non arms length loans are ineligible. Such as builder or realtor incentives or loans that impact the purchase price of the property.
Please let me know if this is an option that you would like to consider. Remember even though this is a way to get into a home sooner it does come with higher interest rates than if you had saved up the money on your own.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here