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1417 9 Ave SE Calgary Alberta T2G 0T4 587.316.2254

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Can You Apply Borrowed Money to a Down Payment?

One of the early steps of the home buying process is to secure the funds needed for your down payment. This is especially true if you want to acquire a home in an expensive market.

There are a large variety of lending institutions you can choose from nowadays, so it is possible for you to find an institution that is willing to lend you the money you need for your down payment. However, there are other factors you need to keep in mind when deciding if you want to borrow the funds you need to cover your down payment. For example, say you are planning to borrow the 5% you need on a line of credit. You will not only need to ensure you have enough money every month to cover your mortgage payments, you will also need to ensure you have enough money to make payments on your loan as well.

However, if you are able to establish your financial credentials to your lender, and they know you will be able to make your monthly mortgage and loan payments, some institutions will accept borrowed money as a down payment for the home you wish to purchase.

If you have any questions regarding using borrowed money for a down payment, or any other questions about the mortgage application process, you should discuss them with your mortgage broker.

Written by Robby Aurora

Robby has been a Mortgage Broker since 2009 and is a Managing Partner at Mortgage Connection. He is an expert in both residential and commercial mortgage loans and leads Mortgage Connection’s Commercial Division. Robby and his team manage a portfolio of mortgage clients, ranging from first time homebuyers to seasoned investors and commercial developers. His experience, financial savviness and detailed approach allows Robby to prepare and package files in a manner that can make all the difference in getting the right solution approved. Robby is a proud Calgarian with deep roots in the City and he is passionate about giving back and the group that is building Mortgage Connection. Robby has a wonderful wife and is expecting their first child. Robby enjoys meeting new people, visiting new places and hitting the ball court.

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