Own a Condo in Scarborough with 5% Down This Fall With Options for Homes!
Monday May 25th, 2020
If you have 5% saved, the Options Down Payment Loan can boost your down payment by 5, 10 or up to 15% and help you buy now. Down payment support is offered to anyone who wants to purchase a condo with Options for Homes and plans to live in their home. The maximum down payment loan is $150,000.
Who is Options?
Options is Canada’s largest developer working exclusively on making home ownership more affordable. Operating for 25 years without government funding, we are a mission-driven social enterprise that turns home ownership dreams into reality. We develop high quality condos with our building partner Deltera (of the Tridel Group of Companies). 1
How it Works:
This shared appreciation loan is payment-free until you sell or move. The added down payment will lower the mortgage amount required which will lower your monthly payments.
| Condo Price | $400,000 | $400,000 |
| 5% down payment | $20,000 | $20,000 |
| 15% Options loan | $60,000 | |
| Mortgage required | $380,000 | $320,000 |
| Monthly payment | $1,997 | $1,682 |
| Household income required | $90,000-$100,000 | $75,000-$85,000 |
When is the loan paid back?
When you move, sell, or pay off the primary mortgage (or before if you choose).
How much will you owe?
Ex: Selling your home after 5 years. Your home price has appreciated to $500,000
The loan provided to you was 15% of $400,000 = $60,000
Therefore the amount owed to Options is 15% of $500,000 = $75,000.
How do you benefit?
| Condo Purchase Price | $400,000 | ||
| 15% Options loan (of home value) | $60,000 | ||
| Payments in 5 years (in interest and principal) | *$59,400 | ||
| Mortgage amount after 5 years | $278,500 | ||
| Amount owed to Options | $75,000 | ||
| New mortgage amount | $353,500 | ||
| Selling price of home | $500,000 | ||
| New mortgage amount | $353,500 | ||
| Equity gain | $146,500 |
*Example based on monthly payments of $1682 for 60 months with an interest rate of 3.99%
Your estimated equity gain in 5 years would be $146,500.
Options is owed $75,000 ($15,000 gain) which is returned to their pay it forward fund to help other home buyers.
To qualify the applicant must:
- have at least 5% down payment
- qualify and secure a mortgage from a primary lender
- plan to live in the options home
Loan Amount:
The loan requested can be for 10% - 15% of the home purchase price.
If you're a first-time buyer you may also qualify for an additional $600,000 to boost your down payment. Click here for more information.
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