When looking for homes in the city, one will notice that to get a decent sized home in the City of Toronto, you will have to start digging deep into your pockets. It is no secret that this city is one of the most expensive to purchase real estate in and furthermore bidding wars are very common when it comes to the single residential homes. When thinking about affordability, if an individual on their own cannot support the payments on their own, what is a typical solution? Get a partner.
A mixer mortgage makes it easy to afford expensive housing as it allows you to get a mortgage with roommates, co-workers, friends, or family members purchase a property together. One credit union that offers this would be Vancity, which is a part of broker channels. Anyone considering doing a co-ownership mortgage should have a lawyer draft up at co-ownership agreement, as sometimes these ownerships can get messy. For example, one person could not pay their half of the mortgage payment and we all know lenders do not accept half a mortgage payment. By getting a lawyer to draft up a co-ownership agreement, you by-pass messy problems like these. In terms of risk, there is no known default of these mortgages to date, meaning they are just as risky as any other typical mortgage given.
Some of the advantages of this mortgage is as follows:
- Mortgage can be split into multiple parts ie. one part can be a variable and one part can be fixed. Keep in mind if choosing an option like this to stick to the same term lengths. If you do not, you can end up with penalty fees on on side if you want to break and someone is inevitably stuck.
- payments can be separate if the co-owners choose to do so.
- payments can be divided into portion of mortgage you own. Ie. if you own half, then half the mortgage payment will be debited from your account and the other half can be debited from your co-owners account.
- Mixer mortgage also uses best posted rates for Vancity
- This particular credit union can offer separate applications for this mortgage, to ensure financial details/personal information are to stay private from any co-owner.
- You can use your mortgage broker to obtain this kind of mortgage
Contact Robert Clancy today to learn if this is the right fit for you!