Without a doubt, one of the most challenging aspects of buying a home—particularly if it’s your first home—is coming up with the down payment.
Canadian real estate policies require that you put down at least 5% of the purchase price of your home. So if the house you want is $300,000, you need to come up with $15,000 before the bank will lend you the money you need to purchase the house. And that kind of money is hard to accumulate for some people.
That’s where Flex Down Mortgage Program comes in. This is a program offered by CMHC, and it basically allows you to borrow the money you need for the down payment. You could use a line of credit, a personal loan, or even a gift from a family member.
This program could be the tool you need to finally get a home you love. Keep in mind, however, that the program isn’t available to just anyone. You need good credit, you need an insured mortgage, and you need to to cover closing costs of at least 1.5% using your own finances.
Contact us to find out if a flex down payment is the right product for you.