I Don’t Have Funds for A Deposit, My Down Payment is in My Home…Now What?
Author: Boychuk Mortgage Group |
If your down payment is stuck in the equity of your home without any secondary source of funds to put towards your purchase deposit, then deposit financing might be for you.
A deposit is different from a down payment and demonstrates the buyer’s good faith to close on their purchase agreement. If you find yourself needing these temporary funds, there are options available.
How Does Deposit Financing Work?
A firm sale contract for your current home must be provided.
The funds leant are secured against your current home.
The amount borrowed for your deposit on your new home must be paid back in full once the sale of your correct home completes.
It’s important to note, if the completion date of your current home falls after the completion of your newly purchased home, you may also require bridge financing to help bridge the gap of your required down payment between closing dates.