The best part about being a mortgage broker is having access to many programs that banks and credit union may not participate in. The Flex-down program is just such a program. It is a great way for home buyers who are having a hard time saving up for their down payments and closing costs. Closing costs alone can be so expensive with land transfer tax, legal fees, pst, home inspection, title insurance and sometimes even property tax adjustments. A small loan for $10,000 or $15,000 can make all the difference in qualifying your for a home that will suit you and your family.
Enjoy today’s blog below!
THE FLEXIBLE DOWN PAYMENT PROGRAM
One of the toughest challenges for homebuyers is being able to save money at the rate of property price increases.
We know many high-income renters would like to be homeowners, but they’re just unaware of how to make the transition and are unable to save fast enough.
There are several options which are great for a down payment if you can use a combination or one of the traditional methods
1. Savings
2. Gift from parents
3. RRSPs
4. Selling an asset
5. Inheritance
Kindly keep in mind this option won’t be for everyone as the following criteria must be met; it’s simply to illustrate the opportunity to go from renter to owner as soon as possible.
The Flexible Down Payment program allows homebuyers to use existing credit facilities as their down payment.
DETAILS:
Minimum household income required is $200,000 combined
• Minimum 650+ beacon score
• Minimum two years history reporting on Credit Bureau
• Sources of down payment: line of credit, credit card, personal Loan
• Include borrowed down payment in the debt servicing of the deal. Example: Unsecured LOC at 3%, Credit Card at 3%, store brand Credit Card at 5%, Personal Loan at actual payments.
• No late payments in the past 36 months
• High Ratio Deals only: 90.01-95% LTV
• 25 year amortization
• Strong Employment History
• No previous bankruptcy or consumer proposal
We can walk you through the details, contact a Dominion Lending Centres mortgage professional today!
Angela Calla
ANGELA CALLA
Dominion Lending Centres – Accredited Mortgage Professional