We currently have access to a cash back program that offers 5.5% back to the borrower. Clients who wish to take advantage of this offer would not qualify for the deep discounted rates, but they do still get the bank’s posted rates. At 5.29% for a $200,000 mortgage over 35 years, your monthly payment would be approximately $1075, including CMHC fees. If you take into account estimated property taxes and heating costs, the income required would be around $47,000.
The cash-back portion of the mortgage can be used for the down payment as well as closing costs or post funding costs.
In order for a family to save up the required 5% down payment and .5% for closing costs, they would have to put aside approximately $185 a month for 5 years. Keep in mind that that is on top of their current rent due as well. If real estate prices were to stay at the exact same value, at the end of the 5 year term on this example cash-back mortgage, the borrower will have close to 6% equity in their home. Instead of paying rent, you will have been paying yourself!
This is definitely an option worth looking into, especially for first time buyers!
Contact me today for more information!
The cash-back portion of the mortgage can be used for the down payment as well as closing costs or post funding costs.
In order for a family to save up the required 5% down payment and .5% for closing costs, they would have to put aside approximately $185 a month for 5 years. Keep in mind that that is on top of their current rent due as well. If real estate prices were to stay at the exact same value, at the end of the 5 year term on this example cash-back mortgage, the borrower will have close to 6% equity in their home. Instead of paying rent, you will have been paying yourself!
This is definitely an option worth looking into, especially for first time buyers!
Contact me today for more information!
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