What Is Flex Financing and How Does It Work?
Saving for a down payment, building good credit to get the best Edmonton mortgage rate, and finding a home with an affordable monthly payment are all significant to purchasing a first home.
Sterling Homes recognizes these challenges, and we have designed several programs that can help you get into the home of your dreams. Learn more about our flex financing options to see if any are right for you
The Trouble with Traditional Mortgage Financing
According to the Alberta Real Estate Association, the average cost of a residential home in Edmonton is currently $370,271. A five percent down payment on a home of this price is roughly $18,000. It’s hard for the average family to save up a down payment like this on top of all their other responsibilities. And while it’s possible to borrow from your RRSP for a down payment, you may be wanting to consider other options.
Even when you have enough to put down, you may worry about inflated monthly payments because your credit score isn’t high enough to get the rates. The combination of these two problems is why many families continue to rent instead of buying their own home.
Getting Credit Help with Sterling
Improving your credit score is the first step to getting the best mortgage rates. You can do this by making on-time payments and paying down your debt. Sterling has partnered with lenders that offer debt consolidation programs and you can use these lenders to take out a loan to pay off your current debts.
In most cases, you’ll be able to lower your interest rates, which will in turn lower your minimum monthly payments. With just one payment, you’ll have an easier time remembering to make your payment on time. You may also be able to pay more than the minimum amount due, and this will decrease your debt overall.
Together, these things will increase your credit score and make it easier for you to get a great rate.
Down Payment Assistance Plans
Sterling also offers programs that make it easier to come up with your down payment. Usually, you have to prove you have the down payment before you can sign a purchase agreement. At Sterling, we will allow you to pay your down payment in instalments while we’re constructing the home. We can also help you find a lender that offers 100 percent financing for your home.
Mortgage Subsidies
If you’re worried more about the monthly payments than the down payment, talk to our representatives about the subsidy programs we have. For a certain specified time, these subsidies can help reduce your monthly payment to make your mortgage more affordable. At the end of the term, you may be able to refinance the mortgage, or you may be in a better financial position to handle payments on your own.
Sterling’s Guaranteed Low Interest Rates
Getting a low interest rate is the key to lowering monthly payments. Most new home buyers have to do the work on their own, contacting several different lenders to compare the interest rates on mortgages.
When you buy your home with Sterling, though, you don’t have to worry about making a mistake with your lender, and you don’t need to shop for a loan. We guarantee the lowest loan rates.
Of course, you don’t have to take our word for it. Bring in your pre-approval letter from your outside lender, and we’ll beat the rate.
Working with Builder-Approved Lenders
When you use any of these services from Sterling, you work with preferred lenders we know and trust. Other lenders don’t offer such specials – but we do encourage you to look!
There’s an additional advantage to using a builder-approved lender. The process for funding for building a brand-new home is slightly different than the process for funding a resale home. Lenders usually give the builder the money in stages. Builder-approved lenders have the funding process down to a science, and there are never delays because the next stage of funding isn’t ready.
At Sterling, we want you to get into the home of your dreams. We’ve carefully designed programs that can help you overcome any obstacle in your path. There is a way for you to get into the home you want at the price you can afford. Talk to us to learn more.
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About the Author:
At Sterling Homes, our mission is to provide the opportunity for affordable homeownership without compromise. Over the last 70 years, Sterling Edmonton has quickly become one of Edmonton’s most popular builders. We bring more than seven decades worth of exceptional customer service, superior design and unparalleled craftsmanship to the greater Edmonton area. As a member of the Qualico Group, Sterling Homes focuses on greater Edmonton’s finest family communities, while being able to offer some of the region’s most family friendly prices thanks to volume purchasing power for materials, trades and land. This has not only made Sterling one of Edmonton’s bestselling, move-up builders, but also one of the industry’s most respected home providers. It is through our uncompromising commitment to our customers that we proudly deliver the Sterling Advantage – that’s why each and every home we build includes a 10-year home warranty, a completion guarantee and new home warranty excellence rating. Our Advantage is our pledge that, when you build your dream home with Sterling, we will deliver a timely, well-built home you’re sure to enjoy for years to come.
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