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.
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.
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.