VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 1, 2014) - Fifty per cent of potential first-time British Columbia homebuyers in a poll released today said winning a lottery, getting married or inheriting a pile of cash are some of the ways they could get together a down payment.
The poll, conducted by Mustel Group for Vancity, found another 16 per cent would consider cash advances on credit cards and borrowing on lines of credit to make a down payment. Unfortunately, using credit in this way may increase debt by thousands of dollars for first-time homebuyers who are already struggling to enter Canada's most expensive real estate market.
As well, about six in 10 report that having an adequate down payment to qualify for a mortgage is one of the key barriers to purchasing a home.
To address the challenge of saving for a down payment, Vancity announced today it is offering a one-of-a-kind mortgage to help qualified homebuyers. The Vancity Down Payment Helper Mortgage provides pre-approved homebuyers with up to 50 per cent of their down payment.
Vancity is the only major financial institution in Western Canada offering this mortgage. The requirements are simple and secure:
- Qualifying homebuyers take part in a cash flow analysis and receive personalized advice.
- Vancity will provide pre-approved homebuyers who qualify for this mortgage with up to half of the five per cent required down payment, to a maximum of $12,500.
- The maximum property purchase price for the down payment helper mortgage is $500,000.
- Eligible mortgages are five-year fixed term products.
Ryan McKinley, Vancity mortgage development manager, says the Down Payment Helper Mortgage puts Vancity's values-based financial service model into action. "We get it: many of our members want to own their homes and as a member-owned co-operative, we're listening to their needs and finding innovative and practical ways to help turn dreams into reality. And we're not stopping there. We're also working with community partners to help increase the supply of affordable rental and owned housing."
Vancity is a values-based financial co-operative serving the needs of its more than 501,000 member-owners and their communities through 57 branches in Metro Vancouver, the Fraser Valley, Victoria and Squamish. As Canada's largest community credit union, Vancity uses its $17.5 billion in assets to help improve the financial wellbeing of its members while at the same time helping to develop healthy, communities that are socially, economically and environmentally sustainable.
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Additional available information
- Mustel Vancity poll result snapshot
- Vancity Down Payment Helper fact sheet
- Interview subjects (developer, real estate agent, potential home owner)