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?2019-02-03T13:30:47+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?2019-01-30T02:14:38+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 will be.

What is ARCH?2019-03-12T02:44:30+00:00

ARCH is a real-estate joint venture company partnering with first-time home buyers to help them overcome the biggest barrier when trying to get on the property ladder… The down payment.

We invest alongside first-time home buyers. We provide them with a significant portion of their down payment in return for a share of the future gain or loss in their homes value when they decide to sell it.

What is your mission?2019-02-03T13:49:39+00:00

We’re on a mission to create a smart pathway to home ownership for those who feel they’ve been excluded because of the barrier of a down payment. We have a vocation to turn the dream of home ownership into a reality for first-time home buyers.

Who is it designed for?2019-02-03T13:49:11+00:00

ARCH is specifically for first-time home buyers who have been pre-approved for a mortgage but lack the 20% lump sum for a home down payment.

This could be two types of buyers. Those who don’t have the minimum 5% but want to get into the home ownership market AND those who have more than the minimum 5% but not enough to meet the 20% requirement.

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?2019-02-03T13:46:00+00:00

Yes, we always recommend this. In order to be considered by ARCH you will need to be pre-approved for a mortgage. It also gives you an idea of how much you’ll be approved for so you can target your desired homes when it’s time to go house hunting.

How do I get pre-approved for a mortgage?2019-02-03T13:45:03+00:00

In order to get pre-approved, you’ll need to contact your financial institution or mortgage broker and have them submit an application for a pre-approved mortgage.

Remember, pre-approval is NOT a guarantee of final mortgage or an ARCH down payment contribution. Once you find a home you want to buy it has to be evaluated to make sure the home’s price and condition are acceptable to the mortgage lender and our team.

What types of info will I need to supply to get pre-approved?2019-02-03T13:44:22+00:00

The basic requirements for a pre-approval are listed below. However, your financial institution or mortgage broker may request more information if needed.

  • 2 pieces of government issued ID
  • Proof of address and address history
  • Contact information for employer and employment history
  • Proof of income (NOA and T1 from previous 2 years)
  • Proof of savings and investments (account statements)
  • Details of current debts and other financial obligations
What are the next steps once I’m pre-approved for a mortgage?2019-02-03T13:43:14+00:00
  • Deciding what percentage (%) of a down payment you want ARCH to contribute
  • Contacting ARCH and supplying them with your mortgage pre-approval indicating the pre-approval amount
  • Receiving ARCH Commitment Letter
  • Reviewing ARCH Commitment Letter with your legal representative (this 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)
  • Signing ARCH Commitment Letter
  • 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?2019-03-12T02:49:01+00:00

The amount we contribute to your down payment will depend on the value of the home you want to buy and if you currently have any money to contribute to the down payment. Whatever the amount, it will be enough to get you the 20% required to ensure you don’t have to pay Mortgage Loan Insurance.

How and when do I get the ARCH down payment?2019-03-12T02:48:27+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?2019-03-12T02:43:44+00:00

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

What is a lien?2019-01-30T02:33:03+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?2019-03-12T02:47:40+00:00

The ARCH lien will be discharged when sell your home. From the proceeds of the sale, you will then repay the money provided to you for your home down payment and the agreed upon % of the appreciated equity value. You can also discharge the ARCH lien prior to sale after a third party appraisal company values your home so you can determine the appreciated equity amount owed to ARCH.

What happens if I never sell my home?2019-02-03T13:40:15+00:00

You will be required to discharge the ARCH lien at a maximum of seven (7) 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?2019-02-03T13:39:43+00:00

ARCH will use a professional, third party, independent appraisal company to value your home at the seven (7) year anniversary.

Do I have to stay in a home for the maximum period before selling?2019-02-03T13:38:35+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 your property whenever you want.

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

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