Let's face it, some people, if they don't get in soon they may never get in.
We are experiencing the Manhattanization of Toronto, with housing becoming less and less affordable.
Why pay $2,000 a month in rent for that 500 square foot condo when you can own it for around the same amount?
This mortgage product is for those with excellent credit and healthy incomes:
The mortgage product is called the Flex Down Mortgage.
We all know the minumim down payment is 5%... with this we allow clients to borrow the required 5% down from a line of credit or loan. As long as they can qualify for both the line of credit and the mortgage, buying is simple!
Here is how it works and how it looks by comparison:
Flex Down Mortgage based on $350,000 purchase price - with no down payment
$350,000 - $17,500 (5% down) = $332,500
+ $14,962.50 (CMHC Premium of 4.50%)
= Total mortgage amount on closing of $347,462.50
@ 2.20% VRM = $1,505.08 per month
@ 2.69% FIXED = $1,598.58 per month
+ $350 (est. condo fees)
+ $120 (est. property tax)
= $1,975 to $2,068 per month ALL IN
Flex down means the client is borrowing the legal minimum down payment of 5% down. Therefore the client would borrow the 5% down ($17,250) and also maybe the closing costs.
*** Keep in mind, for first time buyers there is ZERO ($0) land transfer tax for purchases up to $368,000 ***