Mackenzie Gartside, Select Mortgage
Funding a down payment can be tough, especially for first time buyers.
For purchases up to $500k, your down payment can be as little as 5% of the purchase price (above $500k the percentage gets larger). In our area, however, where even starter home are expensive, this can still be a lot of money. Luckily, you have a few options, which can be combined if needed: 1) your own savings; 2) a gift from family; or 3) a personal line of credit.
Saving your own down payment is the most traditional option – you just need to show three months’ bank history of the funds. Gifted down payments are also common today, with parents or grandparents helping out. The gifts must come from a direct family member (parents/grandparents), so gifts from your siblings or godparents don’t work. Line of credit borrowing can also be an option, but you must have strong credit and enough income to support the LOC payments and any other debts.
If you have questions about the best down payment strategy for your purchase, give us a call!
Mackenzie Gartside is a Mortgage Consultant with Select Mortgage. Find today’s rates online at www.comoxmortgages.com or call 250.331.0800 for a personal evaluation of your mortgage scenario.