Canadian Mortgage News

January 2004 National News Archive

Canadians have more payment options when buying a home, says Invis

New CMHC guidelines open opportunities for those without a downpayment

TORONTO, February 24, 2004 – Canadian homebuyers no longer need to save a minimum of five per cent of the purchase price when buying a home, as outlined by new options from the Canadian Mortgage and Housing Corporation (CMHC) beginning March 1, 2004. But according to Invis, Canada’s largest independent mortgage brokerage, these new options bring a number of implications for homebuyers in the hunt for the best mortgage deal.

“CHMC has recognized there's a specific segment of the population, in particular first-time buyers, who shouldn't have to wait to save a minimum five per cent cash in order to qualify for lending,” said Andrew Moor, president and CEO, Invis. “It can take several years to save for a downpayment – and Canadians with healthy incomes who understand what they can afford now have a number of new options available to them.”

The new options from CMHC – which allow a downpayment to come from lender incentives or be borrowed – have a number of implications for homebuyers, including:

• Parents, friends and relatives can now lend money for a downpayment without it having to be in the form of a gift;
• Be prepared for increased offers and incentives targeting homebuyers who now find themselves qualified to purchase a home under the new rules;
• With a healthy income, qualified applicants can borrow up to 100 per cent of the purchase price;
• A homebuyer’s “level of affordability” is still key. Under the new rules, this may factor in a borrowed downpayment versus a traditional cash downpayment;
• The new guidelines have added a layer of complexity for some homebuyers. Seek the advice of a mortgage professional to help sort through the available lending options;
• Pre-approvals are still important. The pre-approval locks-in a lending rate for a minimum of 90 days and is a vital tool in the ever-competitive house hunting market.

About Invis

Invis is Canada’s largest independent mortgage brokerage with a national team of over 550 mortgage consultants. Invis mortgage consultants provide unbiased financial analysis, mortgage sourcing and mortgage recommendations for both first time homebuyers and repeat buyers. In 2003, Invis assisted clients with $3.7 billion in mortgages. For more information, contact Invis at 1-866-854-6847 or visit www.invis.com.

News source: Invis Inc.