When it comes time to buy a home and you can’t buy on your own, buying a home with a friend may be an option. With the higher costs of buying a home in the Vancouver lower mainland some buyers are looking to share the expenses and buy with a family member or friend.
Buying a home with a friend
In the past many lender policies would not allow for non-family members to purchase a home together, with the exception of couples. However, there are options for buying a home with a friend or non-immediate family members to share the cost and purchase a home together. In fact, some programs will set up the mortgage in a tier format so that each buyer can have their own split allocated. For example, if you are buying a home with a friend and the purchase price is $500,000 and each of you are putting down $50,000 for a mortgage of $400,000 it could be split in two tiers of $200,000. In addition each of you could choose your own rate such as variable or fixed.
By splitting the cost of the down payment and other closing costs the opportunity to become a homeowner may be more of a reality. Working with your mortgage broker you can set up the financing to meet both of your needs when buying a home with a friend.
For more information on this program and others, call me at 604 813 8402 or email pauline@mybcmortgage.ca