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  • Jacqui Mulikow

No Downpayment Saved? No Problem.



Borrowed down payment still exists! If you DON’T have your down payment saved, but you DO have these conditions, you are a good candidate for this NO DOWN PAYMENT SAVED Mortgage.


Have a look at this example: 

You want to buy a home worth $350,000.  Minimum down payment is 5%: $17,500.  If you don’t have that saved, it could take you years to accumulate: ($500/month for 3 years).  In Alberta, we recently experienced a softening of values, but that won’t last.  Prices will increase in the months/years to come, so the $350,000 buy today, might be as high as $380,000 or more when you have the savings ready to go.


Because this mortgage is based on borrowed funds, the cost of the new loan is factored into this scenario and would vary depending on the type of facility you borrow through.  For example, a line of credit vs. a loan can cost you less or more, but for the sake of general interest cost, (unsecured), you would be looking at approximately $3000 in interest over the 3 years on the $17,500 borrowed down payment. (far less than the $20,000+ increase in the value of the home).


And, of course, you own your own home and will be making payments toward your own asset instead of paying down someone else’s debt. 


Example of a mortgage payment for $350,000 purchase price, you’ll pay about $1600/month.  A loan payment on the $17,500 will vary, (o.a.c. at 5.89%/36 months) will be approximately $530/month. Read more from CMHC


You have good job stability, good credit (2 years), and are renting and ready to buy…

Here is an expanded version of the qualifications.


Call me at 403-614-9253 or email me for more information, or to check out your options. 

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© 2018 by Jacqui Mulikow

Licensed under Quantus Mortgage Solutions
 

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