One of the biggest challenges when wanting to purchase a home is saving for the down payment.
Between rent, car payments, student loans and more putting aside an extra few hundreds or thousands of dollars a month can be hard.
If 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, RSP’s, a family gift and so on. However, if you are not able to have a down payment from these sources there is another solution.
No down payment mortgage options in Canada
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.
Let’s say you just graduated and would like to buy a $300,000 home however you do not have any 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 traditional lender interest rates.