No down payment mortgage options for Ottawa. One of the biggest challenges when wanting to purchase a home is saving for the down payment. Keep reading to learn more about the no down payment* mortgage options in Ottawa. With these options you can buy a home with no down payment saved.
No Down Payment Mortgage Ottawa
Saving for a Down Payment Can be Challenging
Putting aside a few extra hundreds or thousands of dollars a month can be hard. Especially between rent, car payments, student loans and more.
If you are saving $250 a month, for example, it would take you five years just save the 5% down needed on a $300,000 home.
Traditional down payment can come from non-borrowed resources such as savings, investments or RRSP’s. Also, a family gift. However, if you have no down payment available from these sources there is another solution.
Flex Down Mortgages in Ottawa
This solution for having no down payment saved is called a flex down mortgage. The flex down mortgage allows clients to borrow their down payment from a loan, line of credit, credit cards, family, friends, etc. Flex down mortgages are offered through mortgage brokers in Ottawa.
Learn more: Mortgage Brokers in Ottawa
For example, if you just graduated and would like to buy a $300,000 home however you have no down payment saved at this time. With the flex down mortgage you could, for example, borrow $5000 from your student line of credit, $5000 from a low rate credit card and $5000 from your family and you would have the 5% down needed. The rest of the mortgage is at regular great traditional lender interest rates.
*The no down payment mortgage refers to buying a home with no down payment saved. Subject to approval by a lender and mortgage insurer. With a flex down mortgage, you are allowed to borrow the down payment from alternative sources like a family loan or line of credit.