Many of us think of purchasing a condo in this fashion: save for downpayment, find a condo, pre-qualify for future mortgage, buy the condo, wait till it’s built, move in and own.
But in reality it’s not that easy to save for downpayment, and prices increase faster then one can accumulate savings, eroding your savings value. Simply put, you’re being left behind.
So here is an alternative: finance the downpayment on your new condo. Simply borrow the funds required – 15% in many cases – and put your name on a unit.
$6/day is what you’ll need to put the downpayment on that $250,000 condo.
In the example above, we’ve used a 6.25% interest rate, and paid the interest only. Remember, you’ll still need to qualify for a loan and be able to pay it back promptly, and you’ll still need to be able to qualify for a mortgage. Nonetheless, it is possible, I’ve seen it done before.
Yossi Kaplan, MBA
Sales Representative, Your Choice Realty Corp
885 Don Mills Rd suite 104