The united states seem to have the FHA loan (3.5% down I believe)
Do we have something similar here in Canada?
What conditions are there (first-time homebuyer)
Looking to househack a duplex or triplex property in the central Ontario area.
Hey! We don't get down to 3.5%, but First Time Home Buyers (which is defined as not owning a home between you or your spouse for the last 5 years or something) can put down as low as 5% - and can borrow from their own RRSP to do this. Any bank can help with this.
Bank mortgages for single and duplex owner-occupied are 5% down, and for three and four-plex you need 10% down. Of course for either of those you still need to add your legal fees ($700?) and land transfer tax (1%-$250), and don't forget your utility hookups, etc that'll come to potentially a couple hundred depending on your utility billing history.
Alternatively, you can find a KILLER deal, get a 100% funded private bridge loan and refinance with the bank either as-purchased or after some repairs to boost the appraisal. This is the BRRRR method, but the 'R'ehab and 'R'ent are actually optional - just beneficial.
Matt. Where do you source the private bridge loans?
Great question @ Matt Geerts, I too am currently looking at getting into MF's however i am exploring funding sources right now. The BRRRR method seems to be the best way to do the "no money down" or "low money down" deals. I have explored using my Unsecured LOC to get started with my funding, however 20k @ 6.7% winds up being $1340/M interest only payments. *Dont ask about the Unsecured portion* long story.
Anyways, It would be nice to be able to find a method of funding that I can cash flow on in the first year. I know it would depend on the deal as well.