Quote:
Originally posted by Sample00@May 12 2005, 02:47 PM
Speaking as a Mortgage Broker, Shane
these are all very good options...
with regards to the line of credit...you would need to prove where those funds came from. And the banks wont accept borrowed funds as downpayment.
well not so much the banks as CMHC (Canada Mortgage and Housing Corporation).
They have very specific guidelines.
CMHC is the institution that insures the mortgages for the banks, when clients have less than 25% as a downpayment.
feel free to contact me if you have any questions.
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What if it's not all borrowed funds. We figure at 15% downpayment we will need about $30,000. We have ~ $15,000 (savings and RRSP). Does it matter if only a portion of it comes from borrowed funds, to top up our downpayment? I guess the thing I don't really understand is if I get a line of credit and put the money in my savings account isn't it my money now? So couldn't I then take that money and use it as if it is my cash? Using a different bank of course for the mortgage than who I have the line of credit from. And then I would just report my monthly line of credit payment as a liability. It just doesn't seem fair.