Family Ties Mortgage

Home ownership runs in the family

Don’t believe us? Introducing, the Family Ties Mortgage. A mortgage option that allows family members to come together and support each other in achieving the dream of owning a home.

Rising housing costs have priced out many homebuyers and made it increasingly difficult to obtain a mortgage. If you’re a parent or a relative helping an immediate family member purchase a home, the Alterna Family Ties mortgage is right for you.Our Family Ties Mortgage enables people to help buy a home for immediate family members with as little as a 5% down payment.

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Download our Family Ties PDF guide for all the info in one handy doc. 

How do I benefit? Expand/Collapse

There are plenty of pros to getting a Family Ties Mortgage. 

  • Own a piece of the housing market
  • Stick together with loved ones
  • Pool your money with up to three other family members
  • Receive fair and competitive rates, no-questions-asked
  • Take advantage of flexible payment schedules
  • Save more with generous prepayment privileges
  • Leverage our advice and avoid common pitfalls

How does this work? Expand/Collapse

The home buying process is intimidating enough, so why go in alone? Our Family Ties Mortgage allows family members to help loved ones who have good credit, but lack the income to meet standard credit granting criteria.

Our Family Ties Mortgage will work with all of our mortgage products. The application process for a Family Ties mortgage is no different than signing on to one of our conventional mortgages.

Is this right for me? Expand/Collapse

The Family Ties Mortgage is ideal for immediate family members. This offering is great for parents who wish to help their adult child purchase a home, parents looking to purchase a home for their adult child pursuing a postsecondary education away from home, an adult helping to buy a home for elderly parents or relatives who are on a fixed income, or even family members who wish to pool their money together to live communally within a single home.

What should I look out for? Expand/Collapse

While it’s only natural to want to help out a family member, it’s important never to place your financial well being at risk.

Before you begin, here are a few things you should know:

  • Withdrawing money from your RRSP’s may place your retirement at risk and there are tax consequences.
  • All borrowers on the mortgage are equally liable for the debt, including yourself if you’re a co-signor or guarantor.
  • Based on your financial situation, leveraging equity in your home may not be the best idea, as a market correction could create difficulty for you in repaying the equity you withdrew from your home.
  • Providing support financially or as a co-signer and guarantor can get complicated if the family member you are helping goes through a divorce after the home purchase.
  • There are other home ownership costs in addition to the mortgage payment which should be considered such as property taxes and maintenance. Will your family require your support for these costs as well?
  • This program does not include the purchase of non-owner occupied investment properties.

Am I missing anything? Expand/Collapse

You’re looking good, but do keep in mind that life can be unpredictable. Mortgage or life insurance is a good idea so that your family member’s home is protected in case of death or critical illness.

Is there another way I can help a family member purchase a home? Expand/Collapse

Sometimes it’s easier just to provide a cash gift which isn’t repayable. For this transfer to be considered a cash gift, you must provide a letter addressed to your family member outlining the total amount gifted and specifically state that the money is non-repayable. The family member will share this document with the Banking advisor at Alterna Savings during their mortgage application.

Is there a checklist I can follow? Expand/Collapse

Here, this will help you keep track of everything:

    □ Have you settled on a partner? For instance, a family member?
    □ Have you selected the very best mortgage product for your needs?
    □ Have you spoken with a lawyer?
    □ Try and relax. We’re here for you every step of the way.