Do you notice that when you work most of your salary or sometime your entire salary goes to loans and bills? You pay for electricity and water bills. Others are even paying for the rent and other expenses. None of these things that you are paying goes to you. Most of the time you can’t even save up. As time passes by, or as you grow old, you wanted to see something foe yourself that you can even called yours. You want to see that all your effort are paid off.
The real estate in Canada is Booming. It is a lucrative investment right now. So, if you decided to look for potential investments you may want to consider a real estate investment. Having so would be a good achievement for you. Besides, you can have a house that you can finally call your home.
Getting an investment is not a simple process. There are lots of things that you should consider. One of the biggest problem you may have is the large amount of money that you have to provide before getting your first real estate purchase. This is one of the dreaded part in real estate and one of the main reasons why lots of people are not taking a risk to invest in a property. Since the real estate business is flourishing, prices of houses, including down payment and other associated fees, are also rising. You may work independently on finding your dream home, however, it is more convenient for you if you will ask for a professional. You may want to consider talking to a mortgage brokers or a real estate agent to help you along the way with the process.
But don’t worry! You can still invest in real estate with no money down.
Does no money down real estate investment exists in Canada?
Yes, you read it right! No money down investments exist. It’s a good option, especially if you don’t have enough funds for your down payment. And yes, it also seems too good to be true. So, you have to know what a no down payment mortgage entails before signing up for one.
How does this work?
Like any other mortgage, zero down real estate investment financing also has its qualifications. First, you still have to have a stable source of income. Your income should be able to pay for your current bills and your additional mortgage dues. You also need to have an excellent credit score credit rating. Having an above-average credit score is an indicator that you are good at handling your finances. Lastly, you also need to be able to have a back-up plan should you experience financial problems, such as loss of employment or a decrease in salary.
If you have all the conditions listed above, then you can start processing for your first no money down real estate investment. The only thing is that there’s no such thing as no money down.
Where should I get funds for my down payment?
Qualifying for a no down payment mortgage does not mean you are exempted from paying your down payment. You’re still going to pay for it, but not through your hard cash. Don’t be confused! Purchasing your home with no money down means there’s no need for you to save money and wait for months until you complete your down payment. You can pay for it by borrowing money through the following options:
Government programs – You can check with the Canada Mortgage and Housing Corporation for government programs that may be available in your province. Some programs offer discounts on the down payment. You might also qualify for incentives if you’re a first time home buyer.
Line of Credit – You can get a line of credit loan to pay for your down payment. Line of credit loan is when you borrow an amount of money from major banks or credit union or with any other real estate brokerage. This maybe a long or short term payment depending on the agreements given to you. There are some interest rates associated with this. However, you should not get it from the same lending institution that helps you finance your mortgage you may talk to your real estate broker to help you find a private lenders or can help you get a good private mortgage lenders in Toronto.
Borrow from a family member or close relative – If you have savings but still not enough to pay for your down payment, you can borrow from your family or any close relative or friends. Just make sure to repay them!
There are also other options like using your credit card or getting a personal loan. Whatever your choice is for your down payment financing, keep in mind that it still needs to be paid.
I’m still not sure if zero down real estate investment financing is for me.
Can’t still decide if you want to push through a no down real estate purchase. Do you have lots of questions about real estate that needs to be answered? Are you looking for a real estate professionals? Well you have come to the perfect place. Faizal Garasia can help you with all the things you want to know about real estate. He is one of the trusted person in real estate industry. He can even help you find a great rate, terms, and payment options for your mortgage. Give him a call or email us now, so you can start with your first real estate investment.