5% Down

FIRST TIME BUYER 5% DOWN PROGRAM

First time buyers may purchase a home with only 5% down under the following conditions:

1. Price of property purchased is $300,000 (lower mainland) or less.

2. Home must be principal residence - does not apply to investment property.

3. Buyers must not have owned a home as a principal residence in the last 5 yrs. Exceptions:

   a) Only one buyer has to qualify for 2. and 3.

   b) Hardship due to homeowner having had to sell their principal residence:

   i) due to formal marital break-up (includes common-law).

   ii) for employment reasons and moved to a new geographic area.

   iii) and sustained a loss of equity. Provided that the net proceeds from the sale are applied to the purchase of subsequent principal residence as part or all of the down payment.

4. Payments for principal, interest, property tax, heating and 50% of any condominium fees can't exceed 32% of your gross family income. (GDS ratio)

5. Your total debt load can't exceed 40% of your gross family income. (TDS ratio)

6. CMHC Mortgage insurance must be purchased at a cost of 2.5% of the mortgage balance. This cost may be added to the mortgage and paid off monthly as part of the mortgage. This insurance is for the sole benefit of the lender but is required by law.

7. Down payment must be from your own resources or a gift. Financial gift from family must be in the buyers possession at least 30 days before making an offer.

8. Mortgage term must be at least 3 years but must be qualified at five years or longer.

9. At least one year on your current job.

10. Clean credit rating.

11. Buyers are required to demonstrate at the time of application their ability to cover closing costs of at least 1.5% of the purchase price in addition to the 5% down payment.

12. Maximum amortization period is 25 years.

Other conditions may apply. For further information please call Sheila & Terry at 604-945-6365
or contact us here

This information is believed to be accurate but is not guaranteed to be so.