Tag Archive for: Flex Down

Flex Down

Flex Down

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 … Read more

A zero-down mortgage by any other name?

LORI MCLEOD

Globe and Mail Update

July 31, 2008 at 7:49 AM EDT

As the financial industry sits down with Ottawa this week to assess tighter mortgage rules, another lending product could find its way into the spotlight – cash-back mortgages.

Keen to avoid a U.S.-style housing bubble, the federal government recently cracked down on lenders and insurers through a series of reforms. Major changes already announced include a planned withdrawal of government guarantees for mortgage loans where the down payment is less than 5 per cent of the home’s value, and for those with amortizations of more than 35 years.

Yet while lenders are phasing out so-called zero-down mortgages, many are still offering buyers a similar option through the use of cash-back incentives in lieu of a down payment. This practice will be up for discussion this week, said

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