You Don't Need to Wait to Buy a Home
If you are interested in becoming a homeowner but haven’t been able to save up for a down payment, call me today to learn more about 5% down mortgage
Only for your Primary Residence
Location:
Canada Wide, except Quebec
Down Payment:
5%
Credit Score (Minimum):
680 from all applicants, 720 required in some cases
Purchase Price:
$200,000 - $999,999
Properties this DOES NOT work for:
Mobile Homes, Farms, Industrial, Commercial
Many people never realize that they don’t always have to save up huge sums of money in order to buy a home. If you are interested in becoming a homeowner but haven’t been able to save up for a large down payment, then we invite you to call us today to learn more about the many benefits of a 5% down mortgage.
Understanding a 5% Down Mortgage
Currently, the minimum down payment for a home is determined by a few different factors, and that includes the total value of the property. As long as the home is under $500,000 then most lenders will only require a down payment of around 5%. That rate is incredibly competitive, and it makes homeownership a real possibility for many residents who otherwise couldn’t become homeowners.
Benefits of a 5% Down Mortgage
Finally Become a Homeowner: With a smaller down payment, you could be in the home of your dreams before you know it.
Flexible Rates: Even if you are only able to 5% down, your rates could still be very flexible as long as you find the right lender.
Start Building Wealth: Owning a home is one of the best ways to build your wealth, and that asset could help you achieve financial freedom.
A Look at the Requirements
Even if you have enough money to put 5% down, the lenders will still need to take a look at many other aspects of your finance. While every lender is slightly different, those institutions are usually going to take a very close look at your financial history. That includes your employer, your income, any existing debts that you might have, and your credit score. They will also ensure that you can cover the monthly loan payments, mortgage default insurance, and any other expenses.
The Mortgage Application Process
With an experienced mortgage broker by your side, this process should be relatively easy and straightforward. We usually invite all of our clients to schedule an initial consultation so that they can learn more about all of the different mortgage products that are available to them. Getting approved for a 5% down mortgage can take anywhere from 30 to 60 days.
Next Steps to Take
To learn more about 5% down mortgages, we invite you to contact us today to schedule a no-obligation appointment.
Common Questions:
Is 5% the minimum down payment for a home in Canada?
Most lending institutions have a strict guideline that they won’t approve applicants who can’t provide at least 5% down.
Should I save up more than 5%?
As a general rule, it is always a good idea to save up as much money as possible for your down payment. A higher down payment could improve the terms of your loan.
Should I look for a home before I apply for a loan?
Getting pre-approved for your home loan is almost always preferable, and I usually suggest that my clients apply to lenders a month or two before they go house hunting.
What if the home I am looking at is worth more than $500,000?
If the home’s value is higher than $500,000, then you must be able to put down at least 10% of everything above that price.
Do I need to wait until I can put a larger amount down?
We would love to help you explore all of your options for owning a home, and it might be a better idea to start this process sooner rather than later.