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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

News source: Invis Inc.


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