Seeking solutions in the real estate market
March 21, 2017 at 4:03 PM
Canadians are faced with great challenges when it comes to deciding where to begin from in the hot housing markets. With high home prices coupled with a modest income, Canadians now find it relatively impossible to own a house. Many people now claim that owning a dream house is not just becoming a dream they had.
But coming to their aids, government and private bodies have put together some solutions for home seekers especially first-time buyers to be able to participates in the housing market. Amongst the various options, three of them were outstanding.
First and foremost, in the Greater Toronto Area, Options for Homes helps buyers to get a home using an equity top-up. This works by providing first-time buyers with a second mortgage with the property they want to purchase. The mortgage sort of provides buyers with 13% of the down payment for new condos. Furthermore, it gives buyers the chance to repay the mortgage after the home has being sold.
Buyers that want to take advantage of the equity top-up will not have to repay the second mortgage once they occupy the condo. However in a scenario one wants to sell or rent the condo, the second mortgage will be due.
According to Mary Pattison, director, sales and marketing for Options for Homes this project is one of a kind and gives opportunity to buyers that qualify for a mortgage to be able to own a property.
In order for buyers to qualify for the equity top- up, they must make available their financial records to prove that they are employed and will be able to pay back the mortgage. There is no other required criterion.
Secondly, builders are partnering with federal governments to provide equity loans to first-time buyers. Many builders have now realized that it becomes difficult for Canadians to be able to own a home without getting aid. In Toronto, Trillium Housing and Daniels are builders that offer equity top-ups to buyers that qualify as a first time buyer.
The same project also exists in Vancouver but this project is mainly meant for buyers that have never owned a property. Furthermore, they should also live on the home and be able to pay back the mortgage but do not earn more than $82,600 as a family or $40,000.
To be part of this program buyers also have to fulfill a time span they should live in the house. Also some builders require that the home you are buying is less that the price offered by the city.
Thirdly, builders are also building homes that are requires for a specific group of people or client. For instance Habitat for Humanity constructs homes for people that have a family or kids. There are also restrictions on how much a family earns to be part of the Habitat for Humanity house. Mostly it depends on the family size.
There are also other homes that are specifically made for artists. An organization called Artscape