Mortgages How To Borrow A Down Payment
Raising enough money for your down payment may be the biggest hurdle you will have to overcome before owning your dream Edmonton home. The ideal situation is saving up to raise the deposit. However, circumstances may not favor this option. Therefore, knowing that you don’t have a rich family to turn to, borrowing is your next logical option. So, here is how to borrow a down payment for mortgages Edmonton.
Best Ways to Borrow a Down Payment for Your Edmonton Mortgage
Having a big down payment on your prospective home presents many advantages. However, like with all forms of borrowing, having the right information beforehand will guide you to the right option.
Apply for a Personal Loan
If you have excellent credit, banks or other lending institutions might be willing to make you a personal loan towards your down payment.
Borrow from a Friend
If you find it difficult to obtain a loan from a bank, you may find a relative or a friend that is willing and able to loan you the amount either formally or informally. However, you should document the repayment and interest terms so that you can qualify for a mortgage. Talk to a mortgage broker to find out your options.
Borrow Against Your Home Equity
If you currently have a home and do not intend to sell it to finance a new home, you may use its equity to source a down payment for your Mortgage in Edmonton.
Home Equity Line Of Credit
This is pretty much like a credit card in which your home is the collateral. Additionally, You will only make payments on the amount you spend. This option leaves a leeway to borrow additional funds in the future if anything comes up.
Home Equity Loans
In this option, you receive a lump sum which will then require you to make fixed monthly payments at a given rate for a specified period.
Essentially, this is replacing your current mortgage with a new one. The main reason for refinancing is to take cash out of your home to then make a down payment for your Mortgage in Edmonton.
Do not give up on owning your dream home just because you don’t have ready cash for a down payment. With the right information and assistance, financing a down payment for your Edmonton Mortgage will be a walk in the park. So call Dominion Mortgage Team. We have 5-star reviews!Request Mortgage Info