15% minimum down payment?
I have heard a number clients, and news agencies saying that 15% is now the minimum down payment required to purchase a home, this is not the case.
New mortgages continue to require a 5% down payment to be insured by CMHC. 15% is the required equity you must have in your home to re finance. Re finance means taking the equity you have in your home and converting it to cash.
Example:
Jane and Jim want to buy a $300,000 home. To buy this home they would require a $15,000 down payment.
Debbie and Doug would like to refinance their home in order to take a few trips and spend some money on the grand kids. The maximum they can refinance their $300,000 home for, is $255,000 being 85% of market value. Leaving 15% equity.
There is also some misinformation floating around in regards to lines of credit secured against Real Estate.
Before making any decisions in regards to these products, please contact your, bank or mortgage broker. If you do not have a reliable source for information I would be happy to refer you to one.
DAVE DRY
RE/MAX REAL ESTATE
102 - 12650 151 AV
EDMONTON, AB T5X 0A1
www.davedryhomes.com
info@davedryhomes.com
Office: (780) 457-3777
Cel:(780) 446-3727