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How to purchase a home with little or no down payment |
(NC)—The requirements for purchasing a home in Canada have changed significantly over the last ten years or so. Falling mortgage default premiums and the lessening of down payment requirements have made access to home ownership easier than ever before.
While the wisdom of the zero-down payment mortgage remains debatable, it is important to note that many Canadian financial institutions have adopted this U.S. model as a way to help people purchase their first homes sooner. Experts at Alterna Savings say that it is well suited for home buyers with a proven track record of managing their debt and the financial capacity to afford homeownership, but who have not yet saved enough for a 5% down payment.
But buyer beware: although this option may be the only way some people will have the opportunity to purchase their own homes, those who use the zero-down mortgage to finance their purchase will pay higher mortgage default insurance premiums, and will have larger monthly mortgage payments.
Credit: www.newscanada.com |
