FREQUENTLY ASKED QUESTIONS2019-03-25T22:48:52+00:00

Frequently Asked Questions.

Yes, we get them…

Maybe because we sound too good to be true. We’re not. We just want to help.

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ARCH - FAQs
Is home ownership right for me?2019-06-18T03:36:07+00:00

Purchasing a home is one of the biggest decisions you’ll ever make but it’s a decision that only has upsides

You stop wasting money on rent and start building your own equity in a safe, secure investment. And remember, when renting, you’re usually just paying someone else’s mortgage. Why not use that money to pay your own mortgage.

What is the minimum I need as a down payment?2019-01-30T02:38:08+00:00

In typical fashion the government has not made this a simple number. In fact, they’ve made it a funny one as it changes dependent on the price of the home.

Its 5% on the first $500,000 value of a home and 10% on any value above that $500,000

Home price = $500,000

Minimum Down Payment = $25,000 with Mortgage Loan Insurance legally required

Home price = $600,000

Minimum Down Payment = $35,000 with Mortgage Loan Insurance legally required

What is mortgage loan insurance?2019-06-18T03:39:39+00:00

Mortgage Loan Insurance is something that protects banks and other mortgage lenders against the risk of mortgage default. Unless you have 20% of the homes value as a down payment you are legally required to purchase Mortgage Loan Insurance. The premiums for this insurance are costly and will be added to your monthly mortgage expense.

IN GENERAL, THE SMALLER YOUR DOWN PAYMENT THE HIGHER YOUR MONTHLY INSURANCE PREMIUMS.
What is ARCH?2019-06-18T03:40:40+00:00

ARCH is a Canadian company that partners with Canadians to make their dream of home ownership a reality. We provide first-time home buyers with their down payment. This can be up to 20% of the purchase price of the home they want to buy. The money we provide is not a loan, there’s no interest and no monthly payments. We’re investing with Canadians and we’re sharing in the gain or loss in their homes value when they decide to sell it.

What is your mission?2019-06-18T03:40:56+00:00

It’s plain and simple. To get Canadians into their first home without the worry of a down payment.

Who is it designed for?2019-06-18T03:41:47+00:00

ARCH is specifically for first-time home buyers who don’t want to waste money on high-ratio mortgages and Mortgage Loan Insurance.  

This could be three types of buyers.

  1. Those who don’t have the minimum 5% but want to get into the home ownership market with a maximum 20% down payment
  2. Those who have the minimum 5% but want to lower their monthly mortgage payments by putting down the maximum 20% down payment.
  3. Those who have more than the minimum 5% but not enough to meet the 20% required for not needing Mortgage Loan Insurance.

With ARCH they can reduce monthly mortgage payments or increase the price of the home they can afford.

Should I get pre-approved for a mortgage?2019-06-18T03:42:20+00:00

Yes. It gives you an idea of how much you can afford when you go house hunting. It also means that your financing is less likely to fall through than it would be without a pre-approval, and in a strong real estate market, every advantage helps. But remember, the pre-approval amount is not guaranteed. The only thing that’s locked in is the interest rate.

How do I get pre-approved for a mortgage?2019-06-18T03:43:12+00:00

Mortgage lenders or brokers will use your financial information to calculate your total monthly living costs and total debt load to determine what you can afford.  Contact your financial institution or mortgage broker and have them submit an application for a pre-approved mortgage. Once you’re pre-approved, you’ll receive written confirmation for a certain amount at a particular interest rate and the offer will be good for a specified amount of time

But remember, pre-approval is not a guarantee of final mortgage or ARCH down payment contribution. Once you find a home you want to buy it has to be evaluated to make sure price and condition are acceptable to the mortgage lender and ARCH.

What types of info will I need to supply to get pre-approved?2019-06-18T03:43:35+00:00

Before pre-approving you, a lender will look at your current assets (what you own), your annual income and your current level of debt.

They generally look at 3 major areas

  1. Annual Gross Income (before taxes)
  2. Debt Payments
    1. Monthly credit card fees (not the balance)
    2. Car payments (monthly leasing or financing outlay)
    3. Other loans and expenses (lines of credit, student loans, alimony & child support)
  3. Living Costs
    1. Utilities
    2. Transportation (ride-sharing, public transit)
    3. Groceries
    4. Entertainment
    5. Clothing
    6. Personal expenses
What are the next steps once I’m pre-approved for a mortgage?2019-06-18T03:45:40+00:00
  • Deciding what % of a down payment you want ARCH to contribute
  • Visit the ARCH website and going through the Get Started steps
  • Receiving ARCH Home Buyers Agreement
  • Reviewing and signing ARCH Home Buyers Agreement which will indicate things such as the amount you’ve been approved for and the agreed upon appreciated equity portion owed to ARCH upon sale of your home (make sure you consult with your legal representative)
  • Choosing a realtor
  • House hunting
  • Choosing a lawyer
  • Home inspection and appraisal
  • Closing the deal
  • Enjoying your new home
How much will ARCH give me for my down payment?2019-06-18T03:46:32+00:00

We provide you with whatever you need to get to the 20% of the home value. You’ll have enough down payment so you don’t have to pay Mortgage Loan Insurance.

How and when do I get the ARCH down payment?2019-06-18T03:47:54+00:00

Once you’ve had your offer to purchase accepted and you’ve been approved for your final mortgage, we will send the down payment to your closing lawyer in escrow.

Will ARCH have a lien on my home once I’ve purchase one?2019-06-18T03:48:08+00:00

Yes. Along with the institution providing your mortgage. This is standard in all home sales.

What is a lien?2019-06-18T03:48:45+00:00

A lien is a filing of notice for a security agreement against personal property to guarantee payment of debt. Financial institutions providing mortgages always have a lien on houses they are financing.

When and how will the ARCH lien be discharged?2019-09-13T01:35:41+00:00

The ARCH lien will be discharged when sell your home and repay the money provided to you for your home down payment and the agreed upon % of the appreciated equity value. It will also be discharged at the agreement maturity date at 10 years.

What happens if I never sell my home?2019-06-18T03:50:10+00:00

You will be required to discharge the ARCH lien at a maximum of Ten (10) years. If you wish to stay in your first home longer than that you can contact ARCH and arrange for an extension or take out a home line of credit to discharge the required amount.

How will you calculate the amount of appreciated equity owed if I don’t sell my home?2019-06-18T03:50:38+00:00

ARCH will use a professional, third party, independent appraisal company to value your home at the ten (10) year anniversary.

Do I have to stay in a home for the maximum period before selling?2019-06-18T03:51:15+00:00

No. As long as the appraised value and the accepted selling price of your home meet an amount approved by ARCH, you are free to sell whenever you want.

Confused about financial jargon? Check out our glossary to start feeling better about the home buying process.

Ready For Your First Home?

Get in touch with us today to see how you can receive down payment support interest-free

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