Why not buy a condo with a minimum down payment and enjoy living in your own property in Toronto or the GTA. When searching for a condo in Toronto, down payment usually looms larger than usual. Sometimes we are unable to understand what we should do and how much down payment is good to make.
First of all, the down payment is the sum that you pay upfront for your condo. You pay this sum to the seller in return of the equity of your condo while purchasing. Suppose if you are purchasing a condo worth $100,000, and your minimum down payment is 20% ($20,000). You will pay this sum to your seller as your minimum down payment, and then you will need $80,000 loan for owning it completely.
Tips on Buying Condo with Minimum Down Payment or Zero Down
- You can buy the condo the same way you buy a single home or apartment. Condos are the real property so applying for a loan is similar to applying for a family home mortgage.
- Most lenders will charge 28 to 31 percent on your monthly income. You should look into this factor before deciding on a single mortgage with a minimum down payment.
- Lenders may require you to pay the insurance. So look whether you will need insurance when you purchase a condo with zero down payment.
- Buying as Co-op share is also an option. You will be a shareholder in the building. In simple, you are buying share based on your particular single apartment. In this case, your lender will look into the building before deciding the mortgage.
Points to Consider before Buying a Condo without Down Payment or Minimum Down Payment
- You will need a good credit score to qualify for a single mortgage without a down payment in Toronto. Make sure that your credit score is good enough. Pay all the debts and clean your record. A good score means you can buy a condo without a down payment.
- Do not Co-op using veteran’s administration loan, unless all neighbors are veterans. You will not be able to cover the cost.
- If you want to own the apartment that you are living in and you want to own it. Try discussing it with the owner of that apartment. Owner may consider the portion of your paid rent as a down payment. You and apartment owner must discuss this with the lender.
- If you had served in the military then you will not need any down payment and you can get a loan with ease.
If you are living in a metropolitan like Toronto down Town areas then family homes are not available as apartments and condominiums. You will need a mortgage to purchase a condo without a down payment. In recent years, lending organizations have become strict and become of it borrowers do not prefer borrowers without a down payment. But that doesn’t mean you can’t buy a condo without a down payment. There are many options that you can choose but the best option for you is to have an excellent credit score so that you can have a single mortgage easily. With this single mortgage, you can buy a condo without a down payment.