Top up for Home Purchase?

[DivorcedDad51]

Hi Forum,

I fully appreciate that this topic is not related to divorce, but rather house purchase. I did lose the house in the divorce, so may be relatable to some out there. Unfortunately, if I would have gotten divorced in 2010, it would be a different story as house prices were not over the moon. The timing of my divorce could not have occurred at a worst time, being smack in the middle of a housing crisis.

I have an excellent career and make a good salary. In normal circumstances (ie: pre-2016), I should have easily been able to purchase a home post-divorce. I have managed to rebuild a down payment, however, am finding that quality homes are just a "tad" out of reach. Although there are some places currently within reach, they are either dumps or in undesirable parts of town which would not be suitable for my kids. I find I am $20-$30k short of being able to land successful bids on homes. Unfortunately, borrowing from family and/or friends is not an option on the table. The fear is that if I continue to wait or prolong, the goalpost will move further again and be completely unreachable (whereby they are so close right now!)

I recall reading in the paper a in early 2022 that people were resorting to outside help, where there were companies that would help "top off" where you fall short, so that people with good jobs/salaries can obtain a house. Not sure how it works, where the company owns a stake in your house and you pay back if/when you sell house. Anyhow, if anyone has any information or advice, please feel free to shoot me a private message. Thanks to all.

[Challenger]

You have few options:
- private secondary lender (think of good 5-6% on top of bank rates, I.e. 10-12%)
- use a mortgage broker - it would likely cost you less than private lender, and provided your income and credit history ok, their help relatively cheap. I’d still prefer using bank instead of mortgage broker whenever there is an option.
- borrowing up to 35K from your RRSP, interest free for 15 years, you do repay it in chunks starting from year 2.
- borrowing money from government - there is a program for first time buyers, they invest with you 5 or 10%, but wants their share back if price appreciates. It is relatively new program, so read the fine print.

[DivorcedDad51]

Thanks Callenger. Yes, definitely using a mortgage broker. Its same as for car insurance....use a broker. I found a company called Ourboro. Its tricky though. If you put in $25k and they put in $75k, they will take 3/4 of the profit at the time of house sale. Its certainly a challenging situation. I am divorced...and realizing that in my market, you literally need to either receive a gift from family (which is not an option for me) or be a couple (2 income household). The days of a single parent buying a home are behind us and condo/apartment living is not appealing. Guess I'll rent!