A developer in British Columbia is hoping to allow buyers to get a brand new condo with no downpayment. Townline has asked the Canadian Mortgage and Housing Corporation for approval to sell the homes at 8 per cent below market value with mortgage lenders financing the deal in full. The deal would require buyers to live in the condo as their principal residence for a minimum of two years and there are some maximum income restrictions.
Although Townline says it wants to help tackle issues of affordability in Vancouver, some experts have expressed concern about the potential of homebuyers essentially having no risk in their home purchase. It would potentially expose CMHC at a time when the corporation is reducing its exposure to the market.
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