Gifted down payment

Aside

Gifted Down PaymentGifted down payment

Gifted down payment are funds given to a mortgage applicant by an immediate family member to be used to qualify for a mortgage or simply to lower the mortgage amount. It is a very common and popular mechanism used by parents or siblings to support their family members financially without expecting the support being paid back

If you are planning to buy a home using a gifted down payment, you need to understand who can this Gifted down payment may come from, and, what are the mechanisms to be followed for it to be accepted.

The Government of Canada recently announced the minimum down payment requirement will be increased from 5% to 10% on the portion of a purchase price for a property that is above $500,000 but less than $1 million on insured mortgages. This change will take effect on February 15, 2016.

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Who can offer a Gifted down payment?

Immediate family members (i.e. parent, grandparent or sibling). Gifts from spouses are not acceptable.

How can a Gifted down payment be used?

A Gifted down payment can be used provided that the funds are properly verified, are non-repayable and all other characteristics of the borrower are acceptable. In most cases Gifted down payment is required to be on the applicants’ account 15 days until the time of closing.

A letter must contain the following information

  • The amount of the gift
  • A statement that the gift is non-repayable and is from non-borrowed funds
  • The full names of the mortgagor and Giftor (s),
  • The relationship between the mortgagor and the giftor(s) and
  • The reason for the gift.
  • The deposit or cheque confirming the funds have been received must be obtained.

Acceptance of Gifted down payment is subject to verification

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Reverse Mortgage

Reverse MortgageAbout reverse mortgage

Activate the equity in your home, remain independent and free in your own home.

The reverse mortgage has experienced an extraordinary 26% increase demand compared to last year.

What are homeowners with reverse mortgage using their funds for?

  • Enjoy some travelling
  • Need to improve your health
  • Make some home improvements
  • Help your family financially
  • Increase your cash flow
  • Investing

Reverse mortgage is a financial instrument that allows seniors to access at very convenient terms the equity in their home

The funds are available to the homeowner in a very short time after the application, and all the process can be done from the comfort of their home.

The purpose of the funds is up to the homeowner but, here below we enlist some common reasons.

Reverse Mortgage Interest Payment Information

 

 

91% of Canadian Boomers do not want to sell their home

  •         A study by CBC found that 91% of Canadian Boomers do not want to sell their home.
  •         As home values continue to rise in Canada, many senior women have tapped into the equity in their home.
  •         Low-income seniors that do not qualify for a traditional mortgage or secured line of credit often are placed into private loans with higher interest rates, high closing costs and annual renewal fees.

How can you help yourself?

If you know a senior that fits into the low-income category, have a conversation with me about HomEquity Bank’s Line of Credit – with the option to make payments, or simply defer payments

Mortgage Reverse Prepayments

 

Is reverse mortgage good?

The Reverse mortgage is simply fantastic, for a number of reasons, but most of all, because it provides easy and secured the access to funds through the equity that is already owned

How is the mortgage loan repaid?

The mortgage rates have always been lower than the rate of the equity increase and homeowners do not have to make periodic payments to the mortgage. The loan and interests will be repaid when the house is sold or inherited to other owners.

It is simple and very affordable. *Free personal consultations* are available, no pressure to commit, just detailed information is provided at the meeting to show you the reverse mortgage fees and qualifications. Get your reverse mortgage application now.

If you are 55+ Home Equity Income Advantage can help you get the peace of mind you are looking for to continue with your life and plans without worries of un-eligibility.

Reverse Mortgage Subsequent Advances

Here are the highlights of the Home Equity Income Advantage:

  • Exclusively for homeowners 55 and older
  • There are no credit or income qualifications
  • You can access up to 50% of the value of your home
  • You receive the money tax-free
  • You can take the money as monthly cash flow and as a series of lump sums
  • No payments are required while you or your spouse live in your home
  • You maintain ownership and control of your home
  • You keep all the equity remaining in your home
  • Your estate is well protected
  • You can save on taxes

Home Equity Bank

We offer the Home Equity Income Advantage in partnership with Home Equity Bank.

HomEquity Bank is a schedule I Canadian Bank and is the only national provider of reverse mortgages to homeowners aged 55 and over

HomEquity Bank’s product line is now officially endorsed and recommended by CARP as a trusted financial solution!

How much can you borrow on a reverse mortgage loan?

Click here to try a free pre-approval reverse mortgage calculation and find out how much funds you ca access from your own equity

Free reverse mortgage calculation


How much can you be pre-approved for? Complete the no commitment form below!

Gender information helps estimate life expectancy

After submitting you will receive by return email the amount you can borrow under this premises


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