The rise in consumer confidence and historically low interest rates are firing up the real estate market which could arguably be the best time for a someone to buy their first home.
One of the toughest obstacles faced by most first time homebuyers is the dreaded down payment and until just recently, there were only two options:
- A select few lenders offering 100% financing with extremely strict qualifying guidelines. This option generally lead into a conversation as to why the client didn’t meet the lending requirements and brought them back to square one; being option two.
- Come up with the traditional 5% down which can be extremely daunting with your average home sale in Calgary being $400,000 and a required down payment of $20,000.
This is why our good friends at National Bank of Canada came up with a product that they call the “Cashback/Flexdown”, which enables a client to purchase property with a down payment from 0-5% down. They are looking for applicants with a solid work history who are simply lacking the ability to come up with the full down payment. Highlights of this option are:
- Interest rates are very reasonable and decrease by the amount a client has to put down, which this is great for someone who has been saving but needs a boost.
- This option is not as beacon score (credit) driven as other traditional alternatives.
With the growing concern that the Canadian Government might tighten up in the mortgage lending requirements, this might just be the stepping stone your client needs to fulfill their homeownership dreams.
Please feel free to contact Josh Higgelke at josh@square1mortgage.ca for more information.
This blog article is powered by CIR Realty, adding value to you and your business by bringing you innovation and experience. To find out more about us, visit www.cirrealty.ca.